Real Estate auction blog: Livestreams and rolling updates from Melbourne’s auction market
A Clayton auction has soared $168,000 past expectations in a surging result under the hammer, and it wasn’t alone. See where auctions boomed in Melbourne, and watch auction video replays.
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A Clayton house has sold for $168,000 more than expected as local agents say the suburb has been “put on the map”.
It wasn’t the only one to surge, with a majority of the 810 homes slated to go under the hammer this week sold under auction conditions.
A three-bedroom, one-bathroom home at 26 Robinson St, Clayton, was among the best results for an above expectations sale, selling under the hammer for $1.158m amid intense bidding.
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The home sold $168,000 above the home’s $900,000-$990,000 price guide.
Ray White Clayton auctioneer and principal Michael Renzella said the result exceeded expectations and compared to the surrounding south east suburbs like Mt Waverley and Oakleigh, Clayton was still very affordable and attractive to buyers.
“Clayton is being put on the map; we’ve got great transport options, great cafes, close to Monash University, hospitals and of course the under construction suburban rail loop station,” Mr Renzella said.
“Although the market is very strong in our area, our office itself has around a 95 per cent clearance rate – I can definitely sense some hesitation from buyers.
“A lot of people are trying to gage what’s happening in the market, how long are rates going to be like this for.”
He also said buyers need to be realistic and not expect a bargain in the immediate aftermath when a property passes in from an auction.
“You don’t have the transparency once the campaign goes behind closed doors,” he said.
“In a private sale you don’t get to see what other people are putting down as an offer.
“You could pay an extra $50,000 without realising.”
But PropTrack figures showed just a further 10 per cent of homes sold within two weeks of auction conditions ending in Clayton.
Under Victorian law homes sold within three days of an advertised auction date are still subject to auction conditions and are typically counted towards the initial clearance rate.
But after that, many sales can struggle.
PropTrack’s analysis suggests buyers have the best chance at negotiating for homes passed in across suburbs from Point Cook to Hoppers Crossing, Sunshine and Dandenong North — with virtually no homes that fall short under auction conditions in these suburbs sold within two weeks so far this year.
But buyers are less well placed to drive a hard bargain in Melbourne’s eastern suburbs, where PropTrack senior economist Paul Ryan noted impressive numbers of sales two weeks on for homes initially passed in.
Blackburn was the best in the east, with 58.8 per cent of those unloved under the hammer selling within a fortnight, Oakleigh East was next at 50 per cent, then Rowville with 45.5 per cent.
AUCTION REPLAYS AND RESULTS
“If you’re at an auction and you’re the top bidder you have a considerable amount of power, you should negotiate with that power,” Mr Ryan said.
“Every successful auction campaign is similar and every unsuccessful one has a different reason for why that might be the case.
“Buyers need to know lots of homes that pass in can be sellers readjusting their price as, effectively, what an auction does is demonstrate where the market is at.”
Mr Ryan added that constrained borrowing capacity was impacting uncommitted buyers worried about financing and uncertainty with interest rates — but confidence was being restored to the market.
“Melbourne has strong auction volumes; prices are flat over the last year, but they’re moderately going up,” he said.
“The auction clearance rate in Melbourne has been sitting around 60 per cent.”
SKY HIGH CHELTENHAM APARTMENT SELLS FOR $760,000
Two bidders led a three-bedroom, two-bathroom auction at 910/6 Railway Rd, Cheltenham, and helped it sell under the hammer for $760,000.
Ray White Cheltenham lead agent and auctioneer Kevin Chokshi said the winning bid went to a young first homebuyer.
“It was a pretty unique property with water views and city views, at the highest point in Cheltenham; it had a real CBD feel,” Mr Chokshi said.
“The seller’s bought it off-the-plan as investors about five years ago, and decided to sell as the costs of having an investment in Victoria have gone up significantly.
“The market has been pretty good, there’s not a lot of stock so it’s all moving pretty well. Last weekend we had a 100 per cent clearance, and we’re on track to have a 100 per cent clearance this week as well.”
YOUNG FAMILY SNAPS UP NEWPORT UNIT
A three-bedroom, two-bathroom unit at 1B Abbeygate St, Newport, has sold under the hammer for $888,000.
A strong opening bid in line with the home’s $850,000 price guide led to two eager bidders increasing their offers by $10,000 increments.
Ray White Williamstown director and auctioneer Joanne Royston said she was pleased with the result.
“A young family purchased the property and are moving back to the area they grew up in,” Ms Royston said.
OWNERS TO BUILD DREAM HOME AFTER LANDING BOX HILL SOUTH HOME
A three-bedroom, two-bathroom home at 16 Foch St, Box Hill South, has sold under the hammer for $1.36m.
The auction opened with a strong $1.2m bid, knocking out much of the competition early on, though three bidders took part in the auction before it ended.
Jellis Craig Whitehorse auctioneer and director John Stack said Box Hill South was in high demand with little stock available for buyers.
“I’m thrilled with the result today, this one hit the brief of a good quality option for buyers,” Mr Stack said.
“The new owners plan on eventually knocking the home down and building their dream home on the site.”
HAMPTON EAST FAMILY SCORE KEYS TO CHELTENHAM HOME
A three-bedroom, two-bathroom home at 15 Elliott St, Cheltenham, has sold under the hammer for $1.505m.
Four bidders registered to take part in the auction where a bidding war took place between them.
Ray White Cheltenham lead agent Trevor Bowen said the sale was very competitive.
“Bidding was going back and forth until the winning bid went to a lovely family from Hampton East who were upsizing,” Mr Bowen said.
“The wife used to live in a very similar home when she was growing up, so she was very excited to get this house.
“The sellers had lived there for 19 years as their family home and are selling as they are building a house in another suburb.”
ORMOND ‘FAMILY GEM’ SELLS FOR $3.05M
A husband and wife setting up a property portfolio for their children has scored the keys to an Ormond apartment complex located at 1-8/24 Walsh St for $3.05m, a hefty $530,000 more than expected.
The complex comprises eight apartments, each with two bedrooms and currently occupied by a tenant.
All five registered bidders participated in the auction — with other interested buyers including investors and those looking to renovate and sell at a later date.
The complex was built by the vendors’ father in the early 1960s and held within the family ever since.
The brother and sister, who grew up in the Bayside area, inherited the property after their father passed away.
The complex was listed by Ray White Carnegie’s Tom Grieve.
WHERE YOU CAN AND CAN’T NEGOTIATE FOR PASSED IN HOMES
Kensington in the northwest tops the post-auction clearance rate list with 69.2 per cent of homes selling up to two weeks post auction.
It could also be Melbourne’s most affordable inner city suburb, according to local agents.
Nelson Alexander Flemington principal Jayson Watts said he was thrilled at the suburb’s post auction clearance rate — and could see reasons why it was so high.
“I can’t think of an area in Melbourne that has three stations in proximity, lots of parkland and a great lifestyle so close to the CBD,” Mr Watts said.
“FY23 was one of the worst markets I’ve seen in 20 years – when the media reported that we were potentially getting a rate cut this year there was confidence in the market, the other week there was talk of a potential rise and, on the ground, that has impacted confidence.
“The Melbourne market right now is sitting dormant, we need a couple of months of favourable commentary and strong government policy – I feel we are on the cusp of a housing boom.”
But for the most part the best performing suburbs after auction were in Melbourne’s east.
Woodards Blackburn auctioneer Cameron Way said auctions were a way for vendors who weren’t familiar with the market to get a good gauge on where things were at.
“We had an auction 10 days ago in 17 Ventura St, Ashburton; quite a nice townhouse on its own title,” he said.
“We thought we had three bidders that were ready, but none of them bid. We made an opening vendor bid at $1.4m and passed it in.
“Within three days of the auction we ended up with two written offers and we exchanged contracts last night – neither of those parties were at the auction.”
Mr Way said he couldn’t disclose an exact price, but that the home was sold within its advertised $1.4m-$1.54m price guide.
He also advised buyers in the area that expecting to get a bargain had proven a mistake for many, and it was better to just get on with purchasing a home.
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Originally published as Real Estate auction blog: Livestreams and rolling updates from Melbourne’s auction market
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