Melbourne auctions: reserves ‘almost irrelevant’ as market surges
A Melbourne real estate agent has claimed reserves are “almost irrelevant” after a blowout auction sale.
A Macleod house that sold a whopping $300,000 above the vendor’s asking price has proven “reserves are almost irrelevant at the moment”.
This the verdict of Barry Plant auctioneer Michael Egan, who wasn’t surprised the 94 Springthorpe Boulevard house had become the second priciest home in the suburb with its $2.1m sale on Saturday.
Four bidders drove the multimillion-dollar result from a $1.6m opening bid. The winner bid online from interstate.
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“Because it’s a flying market, I think reserves are almost irrelevant at the moment,” Mr Egan said.
“Buyers are screaming for quality homes and paying what they have to get them.
“The vendors are over the moon. Though we had that feeling from the start that the reserve wasn’t going to be an issue.”
All the prospective buyers had been families looking for an upgrade.
Meanwhile, a Kensington auction that drew a crowd in the hundreds “like a school fete” soared $555,000 past its reserve a few hours later.
On the first day after restrictions were returned to the COVIDSafe summer setting following a recent snap lockdown, the 21 Bangalore Street home had five bidders to help push it to a $1.655m sale.
Nicole Gervasi director Nikki Gervasi said the bidding started at $1.35m — a whopping $250,000 above reserve.
“After the lockdown, there was no activity until three or four days before the auction. It was a really late bloomer,” Ms Gervasi said.
The home had been valued by a bank at $1.03m for probate reasons and only received 65 inspections, mostly from families looking for a renovation project. This made the huge crowd and result a surprise.
“For me, that was the biggest crowd since 2009,” Ms Gervasi said.
“It was like a school fete.”
Meanwhile, a Thornbury unit sold for $756,000 after attracting six bidders — all of them first-home buyers.
McGrath auctioneer Luke Brizzi said the home had a $590,000-$640,000 price guide before auction that would have stretched the same buyers last year.
But the 13/184 Normanby Avenue home received a $680,000 opening bid that instantly topped its $660,000 reserve.
“Last year, no one wanted to spend over $600,000, and now it is completely different,” Mr Brizzi said.
“The vendors were ecstatic. On the day they were worried they wouldn’t even reach their reserve.”
Victorian homebuyers receive a 25 per cent stamp duty cut for established homes, or 50 per cent for new builds, below $1m until the end of June.
Previously, first-home buyers received a stamp duty waiver for homes that cost less than $600,000 and a reduction for homes up to $750,000.
National Property Buyers director Antony Bucello said he watched houses at 67 Russell St, Campbellfield, and at 40 Messmate Street, Lalor, sell more than $100,000 above their reserves on the weekend.
“There is absolutely no recent comparable sales evidence that tells us these properties would go anywhere close to the levels they sold for,” Mr Bucello said.
“Make no mistake — the market is hot.”
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Originally published as Melbourne auctions: reserves ‘almost irrelevant’ as market surges