Coburg townhouse passes in, then sells to first-time buyers for $955,000

A townhouse in Coburg was passed in at auction and sold afterwards for $955,000 to first home buyers.

The three-bedroom townhouse in 13 O’Hea Street was listed with a price guide of $850,000 to $935,000, and the reserve was set at $930,000.

Despite strong interest and three registered bidders, bidding stopped after an opening offer of $900,000.

The property was one of 1330 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 64.7 per cent from 983 reported results throughout the week, while 117 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The only bidders, a young couple with two children, negotiated with the seller afterwards and bought the house.

They were looking to relocate from their smaller Elsternwick rental to be closer to work.

One registered bidder said they were waiting to see the effects of the upcoming election before buying a home. The other had a budget of $880,000.

Raphael Calik-Houston, of Ray White Coburg, said he was surprised by the “unique” outcome.

A three-bedroom Coburg townhouse sold to first-time buyers for $955,000, after first passing in.Credit: Photo THE AGE/ LUIS ENRIQUE ASCUI

“That one buyer was really, really committed, and they wanted to negotiate, so we ended up agreeing on a figure,” he said.

“But we were taken off-guard because we had a really strong campaign … We thought there would be a back-and-forth between bidders.”

The home has bright interiors and renovated bathrooms. It is close to train stations, local parks and Sydney Road.

Calik-Houston said elections could bring about uncertainty in the property market, even with a “more affordable” price point.

“[The election] might be playing a small role on people holding back and seeing, with a [possible] change of government, if there is a new policy that is going to change things with the market,” Calik-Houston said.

A workers’ cottage in Fitzroy sold for $1.13 million to a first home buyer, whose parents bid on his behalf.

The two-bedroom, one-bathroom Victorian home at 196 Moor Street attracted three bidders and a large crowd.

The price guide was set between $950,000 and $1.04 million, with a reserve of $1 million.

Bidding opened at $900,000, with a vendor bid at $950,000, before climbing quickly in increments of $10,000 and $20,000 up to $1.1 million.

It came down to a battle between two first home buyers, and the local buyer secured the win through his parents while he was at work. The underbidder was a young couple.

Mark Verrocchi, of Nelson Alexander Fitzroy, said the small home was a “quintessential Fitzroy property” and the auction had a strong turnout.

“It was an old workman’s cottage, and it had a lot of character and charm … It was well attended, with lots of neighbours, and there was a nice round of applause [when the property sold],” Verrocchi said.

A house in Frankston North sold for $655,000 at auction, changing hands for the first time in more than 50 years.

The three-bedroom home at 8 Gardenia Crescent was listed with a price guide of between $559,000 and $590,000. The reserve was set at $545,000.

The property attracted seven bidders, including four first home buyers and three investors. Two had flown in from Sydney.

Bidding opened at $540,000 and rapidly climbed. Most bidders dropped off around $625,000. The final two bidders faced off until a local carpenter in his 30s won, beating out the underbidder who was represented by an advocate.

Mark Burke, of OBrien Real Estate Frankston, said the home had strong interest despite its modest interior.

“Buyers seemed to like [the property]. It might have been because you could possibly [develop] something behind it,” he said.

Auctions in the area have been competitive. Burke said Frankston North was popular with interstate buyers because of its affordability compared with Sydney.

“They think it’s cheaper here, which it is,” he said. “If you compare it, it’s a lot cheaper.”

In Fairfield, a young family bought a small Edwardian home for $1.855 million, well above its price guide.

The two-bedroom house at 23 Gordon Street was listed with a price guide of $1.6 million to $1.65 million. The reserve fell within that range but was undisclosed.

The auction opened with a vendor bid at $1.6 million and five local bidders competed. Bidding went quickly in $10,000 increments until hitting $1.8 million, then slowed to $5000 and $1000 jumps.

The winning bidder was a local young family who wanted to stay in the area for its proximity to schools. The underbidder was another local young couple.

Carl Sacco, of Nelson Alexander Northcote, said buyers were drawn to the property’s size and family-friendly location.

“It was a really good block and a really good spot,” he said. “It’s just off Station Street. It’s mainly the block size that people were after. It’s 550 square metres.

“It’s a real community in Fairfield, all the neighbours know each other; they’re all going to the local schools.”