By Emily Power
First home buyers who jetted in to Melbourne from Brisbane in a quest to secure a property have triumphed over investors at auction on Saturday to pay $1,025,000 for a Flemington home.
The Brisbane pair purchased a character-filled, three-bedroom terrace at 4/67 Dover Street and had tickets to fly back to Brisbane the next day to prepare for the move.
The deal soared clear of its $870,000 reserve, after a campaign with a quoted price range of $820,000 to $900,000.
Five bidders registered and three were in the hunt under the hammer.
Nelson Alexander listing agent and auctioneer Ryan Currie said from the opening bid of $950,000 to the gavel falling, the auction only lasted a “crazy” four minutes.
“We have really noticed the market starting to move,” he said.
Ryan Currie auctions the Flemington terrace. Credit: Joe Armao
“The young couple from Brisbane had been looking at homes all week, madly house hunting. The buyer called me at 7:30pm yesterday and requested a copy of the contract, turned up today, introduced himself – he had not seen the home before – and had a strong approach in his bidding.
“He is back on a plane on Sunday and wanted to secure something.”
The property was one of 831 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 69.9 per cent from 601 reported results, while 52 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
It was a pattern at auctions across Melbourne, as agents reported investors – local and interstate – were back with a gusto due to softened but stable prices.
Those conditions were also suited first home buyers, selling agents said. The hope of a February rate cut added a dollop of confidence to the weekend action.
In Frankston North, nine active bidders, including first home buyers and Victorian, South Australian and NSW investors, pushed the price of a brick three-bedroom home with a backyard fibro studio to $665,000.
The result at 54 Rosemary Crescent trounced the reserve by $105,000, against a quoted price range of $560,000 to $616,000.
A first home buyer snuck ahead of the underbidder investor to win the keys after a “spirited” exchange, agent Mark Burke from O’Brien Real Estate said.
The opening bid of $540,000 was below hopes, but a shortage of stock helped momentum, Burke said.
He said Victorian prices are “steady as she goes”, and that has appealed to investors, including interstate raiders, who are prioritising yield.
“There were a lot of people very keen to get it and first home buyers are really chasing stuff, but they are up against a new person now – investors from Melbourne, Sydney and interstate,” Burke said.
“The investors have not [got] much fear, and they do their calculations of what they are going to rent it for.”
First home buyers also put their name on the contract ahead of investors at 20 Jolimont Road in Point Cook.
Eleven parties registered to bid and five participated, securing a sale of $645,000, eclipsing a $580,000 reserve. Three bidders were debutant buyers and the others were investors.
The expected range during the campaign for the modern three-bedder with a triple garage was $550,000 to $605,000.
A freestanding house in the realm of $600,000 in the suburb was considered a “good deal”, agent Amar Thakkar from Ray White said.
“Interstate investors are finding the Melbourne market is the best market to be in, given how the other capital cities have gone,” Thakkar said. “They have clearly been outpriced, but the value exists in Melbourne.
“The vendors are ecstatic to get $65,000 above expectations and the buyers had missed out at other auctions recently.
“They knew they had to be strong and push it. They could see the competition was there.”
In Carlton North, a young local family will be moving into a coveted corner terrace for a sum within the price guide.
The auction of 54 Davis Street drew three bidders and opened with an offer of $1 million.
The property, named Amynta Cottage, tripped in just above the $1.17 million reserve, and sold for $1,185,000.
The two-bedroom Victorian with traditional details had the bonus of laneway access. Its quoted price through the campaign was of $1.1 million to $1.2 million.
Jellis Craig agent Lachie Fraser-Smith said a bidder from Tasmania was eyeing it off as a Melbourne base. Another was aiming to secure it for their son, who is attending university nearby.
The soon-to-be owners already live in the postcode, he said.