Port Melbourne biscuit factory conversion tops reserve by $425K as restrictions eased further
The sale of a Port Melbourne biscuit factory conversion had its owners licking their lips after it soared $425,000 past reserve, as buyers and sellers taste even more freedom from restrictions.
The owners of a tiny Port Melbourne pad inside a former biscuit factory were “doing cartwheels” after it soared $425,000 past reserve.
More good news for the Melbourne auction market swiftly followed the standout sale, with Premier Daniel Andrews announcing more freedom for the state’s real estate sector.
Up to 50 people are now permitted to attend outdoor auctions in Victoria, and groups of up to 20 people can privately inspect homes at the same time — both up from the previous cap of 10.
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Real Estate Institute of Victoria president Leah Calnan said the latest easing of real estate restrictions brought a “really important sense of normality” to the Melbourne and regional markets.
The increased auction capacity in particular allowed for “greater transparency” for bidders, as they would now be able to stand next to the majority of their competition, and encouraged prospective buyers and sellers to get out and research the market, she said.
It also would have helped at Saturday’s auction of a four-bedroom Bentleigh East house, from which Castran Gilbert agent Paul Castran had to cull 31 registered bidders down to just 10.
The 30 Kennedy Street property still sold $290,000 above reserve for $1.72m.
Ms Calnan said home sales had spiked across the state since the lifting of key COVID-19 restrictions including a crippling two-month ban on physical home inspections from September 28 and “the ring of steel” separating Melbourne and regional Victoria from November 9.
“The rest of this year and into 2021 will be very different for the real estate space,” she said.
“Auctions will continue right up to the 23rd, or maybe even the 24th of December.”
Realestate.com.au recorded an 82 per cent preliminary clearance rate for Victoria from last week’s 636 scheduled auctions. It expects 858 homes to go under the hammer this week.
RT Edgar Albert Park director Simon Graf said a “perfect storm” of low interest rates, limited stock and pent-up buyer demand propelled 35 Stokes Street, Port Melbourne, to a $2.125m sale that had its vendors “doing cartwheels” on Saturday.
The sale, well in excess of the $1.7m reserve, was made even more remarkable by the fact the stylish two-level, three-bedroom conversion inside the 1854 Swallow and Ariell Biscuit Factory sat on just 85sq m of land.
“It worked out to be about $25,000 per sq m, which is something I’ve never seen before. If it’s not a record I think it would be one of the highest sales in terms of price per square metre,” Mr Graf said.
In Carnegie, the outgoing 10-person restriction didn’t affect the $1.281m sale of 48 Gnarwyn Road, which smashed its reserve by $231,000 in a online auction.
More than 45 people dialled in, and 34 registered bidders fought it out for the three-bedroom property from the comfort of their own living rooms.
Ray White’s Josh Hommelhoff said a first-home buyer couple scored the California bungalow after 40 bids were placed.
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Originally published as Port Melbourne biscuit factory conversion tops reserve by $425K as restrictions eased further