Herald Sun Real Estate auction blog: Livestreams and rolling updates from the auction market
Champagne results and big premiums have emerged for retro homes amid a hectic finish to January’s busiest ever auction market. Watch auction replays now.
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A Rye house built in the ’70s as the “pride and joy” of its owners will soon host holidays for a family of five in a change that will leave the old walls with no idea “what to bloody say”.
It’s one of a host of successful sales around coastal and regional Victoria, as well as Melbourne’s suburbs, this week.
And while there are signs the market isn’t quite the same as it was at the end of 2021, big results are still emerging for many of the homes testing the waters.
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Across Melbourne, Real Estate Institute of Victoria president Adam Docking said there was no sign the auction market would shift dramatically.
“I think the clearance rate will still be pretty good,” Mr Docking said.
He noted coastal areas might have particularly strong results.
“It’s amazing how many people spend Christmas by the beach and decide it’s a beautiful place to live,” Mr Docking said.
And while there have been mixed results with some homes selling in the range and others passing in today and earlier in the week, there are still plenty of properties where prices have surged above expectations.
93 CREEDMORE DRIVE, RYE
The Rye RSL will be hosting its share of post-auction celebrations today after a series of strong results in the popular coastal hamlet.
Among the best was a $973,000 sale at 93 Creedmore Drive, where a Brighton family looking for a holiday home trumped a first-home buyer hopeful in a six-bidder battle.
Stockdale & Leggo Rye director Ben Kenyon said while he’d had to start the bidding with an $800,000 opening offer, the eventual result far above the $900,000 reserve reinforced the high levels of demand in the suburb.
Mr Kenyon said in the not-too-distant past a similar home would have attracted two bidders, so to have six was a significant uptick.
“The sub-$1m market is really positive at the moment, though there are limits as to how far people will go for an unrenovated home,” he said.
“We had just under 100 groups through this property and had anticipated quite a few bidders given more than 20 had requested documents.”
AUCTION REPLAYS AND RESULTS
He added that many buyers, particularly first-home buyers, had shifted their attention to homes in need of a reno as the area’s property market had surged in recent months — but noted even these homes were now selling very strongly.
Susan Boon was selling the home her parents built in the 1970s as their “pride and joy” and was thrilled and “very emotional” over the result — and with the knowledge it would be renovated rather than demolished.
“I’m still shaking, it was a massive result — but I’m very glad it’s over,” Ms Boon said.
“I honestly thought it would be knocked down.
“To have three little kids coming to it is great. Those walls won’t know what to bloody say.”
She added that she would soon be celebrating with a bottle of champagne at the Rye RSL.
67 MACPHERSON ST, FOOTSCRAY
A buyer who undercut a Footscray home’s $925,000-$975,000 asking price with an $800,000 opening offer has wound up with the keys almost $200,000 later.
The auction for the two-bedroom charmer at 67 Macpherson St needed a vendor bid and a second party to get up and running, but quickly escalated to a $996,000 sale.
The buyer, who kept tapping the breaks with bids as low as $1000, overcame larger offers from another party that had the home on the market $990,000.
Compton Green auctioneer Adrian Butera noted the property could suit as a rental or a home.
It features two living spaces and a trove of period detail.
12 BOSTON ST, FAWKNER
The three-bedroom family home at 12 Boston St, Fawkner, sold above expectations despite a bottom-of-the-range opening offer.
The solid brick address attracted a modest group of bidders and a decent crowd as Barry Plant’s Inner City Group auctioned it at noon.
A $780,000 opening bid was followed by a few $10,000 rises, before slowing to offers of just $500 before it reached $835,000. After a handful of meetings with the vendor, the auctioneer slowly coxed the number upwards in minor increments until it was called on the market at $845,500 — above the $840,000 top of the home’s pre-auction range.
It slowed even further thereafter, with bids of just $250 nudging the figure up until a $500 final bid ended the auction at $856,000.
135 EIGHTH AVE, ROSEBUD
Rosebud emerged as an unlikely auction hot spot for Melbourne this week, the coastal town scheduling 14 homes to go under the hammer.
And the extra options for buyers don’t appear to have hurt sales margins, with the 11am auction of 135 Eighth Ave surging from a $650,000 opening offer near the bottom of its price and onto the market at $735,000 in just four bids.
It then kept on surging to a $795,500 sale, a hefty $62,500 above expectations.
Barry Plant Rosebud’s Paul Cunnington said the renovated former rental had attracted 61 groups ahead of the auction, prompting them to raise the price guide from $660,000-$700,000 to $680,000-$720,000.
“To get anything so close to $800,000 is remarkable,” Mr Cunnington said.
Records show the home last changed hands for $335,000 in 2014, meaning the owners have more than doubled their money in eight years.
Multiple buyers contested the home, but the keys went to a man with his family at his side.
“Most of the buyers were looking at it as an investment or as a holiday home,” Mr Cunnington said.
“They were predominantly Melbourne-based and liked that it was walking distance to the beach.”
35 CAMELOT DRIVE, GLEN WAVERLEY
The $1.5m sale of 35 Camelot Drive, Glen Waverley, has marked an early jousting session between vendors and real estate agents as the latter warns the “Covid-effect” that drove huge sales in 2020 and 2021 was unlikely to continue this year.
A $1.2m opening bid was rewarded with a bottle of champagne and quickly topped by a $1.3m offer, with three buyers eventually competing.
But the auction slowed slightly thereafter with Harcourts Judd White director Dexter Prack consulting with the vendor to adjust the reserve before it reached $1.4m.
The auction stalled again at $1.47m before a $1.5m vendor bid which was right on the new reserve. After no further bids emerged a buyer relocating from Sydney matched the $1.5m vendor bid and claimed the keys.
Mr Prack said they had four buyers lined up during the week, but lost one bidder after their bank reduced what they were willing to lend to them.
The Australian Prudential Regulation Authority (APRA) last year set a requirement for banks to assess repayments at a higher rate ahead of expectations interest rates will rise this year, in many cases reducing how much money borrowers can access.
In addition to bank policies influencing the market, Mr Prack noted vendors needed to be aware there had been substantial price growth in recent months and that the same demand driving that may not continue in 2021.
“This property would have been sold for $1.2m 20 months ago,” Mr Prack said.
“The market has started slower than it ended last year, but inspections are still really strong. So I believe the market is going to be very stable this year. But the big litmus test will be if vendor’s adjust their thinking and let go of the ‘Covid-effect’.”
4/442 GRIMSHAW ST, BUNDOORA
A three-bedroom townhouse across from a popular Bundoora shopping precinct has sold for $685,000 after a three-bidder contest.
But it appeared to be the vendor of 4/442 Grimshaw St rather than the buyer feeling the heat.
A $620,000 opening bid was quickly upgraded by $20,000, but bidding slowed to $10k rises short of the home’s reserve.
A final $5000 bid brought the home to $685,000 before the auctioneer retreated inside to consult with the owner.
They emerged a short time later, received no further bids, then returned inside again to speak with their vendor.
When they returned the home was on the market at the previously bid $685,000, and with no further offers sold for that sum.
The Ray White Bundoora listing was advertised for $650,000-$690,000 ahead of the auction.
136-162 MAUDE ST, SHEPPARTON
A pair of Shepparton churches at 136-162 Maude St were sold by the Uniting Church in a $1.29m auction that soared almost $100,000 past expectations on Friday night.
And while the local congregation will be singing the sale’s praises, the big result will also answer local op-shoppers’ prayers as the group intends to use the funds to renew an op-shop in the town.
The two buildings, a disused fraction of the local congregations holdings in the regional centre, had been expected to sell for more than $1m and went under the hammer with a $1.2m reserve.
Cardamone real estate boss Peter Cardamone said four bidders had competed for the local landmarks, with a $900,000 opening bid.
“And there was a crowd of 70, when normally to get 10 is great,” Mr Cardamone said.
“It was a local buyer, though I’m not sure what they will do with them.”
The churches come with heritage aspects, but there is scope at least one could become a private residence and the other had been leased by a local music group.
The Uniting Church listed the properties for sale after relocating to new digs around the corner, but still retains sites along Maude St where they will continue to run outreach and community programs from.
10 FULLARTON DRIVE, PAYNESVILLE
On Thursday, the market left a group of former Paynesville brothers waiting for a result, including one who is a personal trainer to Hollywood stars Brad Pitt, Chris Pratt and Will Smith.
California-based fitness expert Juni Armstrong, who almost went to the Olympics as a Graeco-Roman wrestler, along with brothers Francis, Chris and Manny put the 61.87ha property under the hammer on Thursday afternoon hoping for $15m.
The property, which spans three addresses including 10 Fullarton Drive, passed in on a $14.5m vendor bid. Live offers started at $8m, but stalled at $10m.
Castran Real Estate boss and auctioneer John Castran said they were negotiating with parties at around the $14m mark on Friday.
Previously speaking on behalf of the family, Francis Armstrong said the family hoped the site could be developed to help expand the popular boating town as it wrapped around one of its edges.
23 OAKPARK DRIVE, CHADSTONE
With a number of the buyers describing the charming Cape Cod-style home at 23 Oakpark Drive, Chadstone, as a “gingerbread house”.
But despite its sweet appeal, the three-bedroom house on a well-regarded street passed in on Thursday night.
Bill Gianidis from Ray White Ashburton, which has been operating from the firm’s Oakleigh branch ahead of an official opening on February 16, had the property listed for $1.1m-$1.2m, but bidding between three groups faltered at $1.13m.
Mr Gianidis said he expected a deal would be settled in the coming days, with negotiations currently around the $1.12m mark.
Most of the prospective buyers are looking for a family home.
3/19 ATKINSON ST, CHADSTONE
While the four-bedroom townhouse at 3/19 Atkinson St, Chadstone, had been expected to sell for $965,000-$1.06m, four competitive buyers had set their budgets much higher.
An $850,000 opening bid quickly escalated to $1.025m, where the home was called on the market.
But the offers from four parties continued until $1,187,500, with the home ultimately selling $162,500 above expectations to a downsizer.
“They had been looking for a couple of months after selling their home,” Mr Gianidis said.
“But that was just insane as a price.”
The underbidders, mostly young couples, would be likely to face ongoing competition this year, he warned.
“2022 has kicked off with a very strong start,” Mr Gianidis said.
“You wouldn’t have seen that price last year.”
1 DUNDAS ST, RYE
An Australia Day auction proved a wide call for the vendors of 1 Dundas St, Rye.
The six-bedroom home attracted a crowd and six bidders who carried the price hundreds of thousands of dollars past expectations.
A $1.2m opening bid quickly eclipsed the reserve and the home was called on the market at $1.8m.
But in the end an investor who has already bought three holiday homes to lease out in the past 18 months trumped the competition with a $2.035m final bid, according to Stockdale & Leggo Rye director Ben Kenyon.
The buyer’s multi-home interest was driven by the Covid-19 pandemic, which has seen an increase in the number of people choosing to holiday at home in coastal Victoria.
“The demand at the start of this year has just been insane,” Mr Kenyon said.
BIGGEST JANUARY FOR AUCTIONS ON RECORD
PropTrack, the economic research arm of realestate.com.au, has noted 344 of the more than 370 homes going under the hammer in Victoria this week will do so in Melbourne — far above what is normally recorded in the traditionally quiet January market.
“Based on auction volumes so far this month, and those currently scheduled this week, volumes are 14 per cent higher than over the same period last year and higher than any previous year in which we’ve tracked auction volumes,” said PropTrack economic research executive manager Cameron Kusher.
This week’s hot spots include Craigieburn, with 15 auctions scheduled, Rosebud, with 14, and Ferntree Gully at 11.
Auction numbers will rise to 635 next week and past the 1000 mark the week before Valentine’s Day.
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