Two historic properties on an iconic East Melbourne street corner passed in at auction on Saturday on a bid of $6.3 million.
The properties at 141 Powlett Street and 115-117 Grey Street had a listed price range of $6.5 million to $7 million, with the vendor’s reserve set at $7.95 million. The Georgian bluestone and the apartment block had a total of 18 bedrooms.
“It’s quite a unique property because it’s a National Trust-listed bluestone house, plus a block of flats on quite a prominent corner in East Melbourne,” co-listing agent Sean Cussell from Christie’s International Real Estate Victoria said. They were co-listed with Marshall White Stonnington.
“It has scope for renovation or extension, but can’t be demolished.”
Only one bidder made an offer at the auction despite other potential bidders - a mix of investors, developers and a homeowner - attending, including one who had made a previously rejected offer.
“The bidder made a bid of $6.3 million; it was then passed in,” Cussell said, with private negotiations between the unsuccessful bidder and two other parties continuing after the auction.
The result has been typical of the current market, Cussell said.
“Since the calling of the election, we have certainly seen a dampening of interest. But traditionally this is generally short-lived with a pocket like East Melbourne,” he said.
The property was one of 1191 scheduled to go to auction in Melbourne this week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 67.2 per cent from 863 reported results throughout the week, while 100 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Northcote, a four-bedroom Edwardian family home at 344 Clarke Street sold for $2.36 million, above the $2.2 million reserve.
The home had a price guide of $2 million to $2.2 million and attracted five active bidders.
Jellis Craig Inner North director and auctioneer Sam Rigopoulos said four families and a downsizer fought it out in a “pretty competitive auction with a convincing result.”
Bidding opened at $2 million with the five bidders trading offers. The opening bidder was the first to drop out.
“She dropped out once it was called on the market at $2.2 million,” Rigopoulos said, with another interested party also stepping away toward the end.
The buyers were a local family who were looking for more space.
“The turnkey home was renovated within the past five to ten years, and it’s close to schools and the train station - these were all major drawcards for them and the other bidders,” Rigopoulos said.
Rigopoulos said all six of the auctions he called on the weekend sold under the hammer, which he related to a lack of stock.
“Most of that energy was driven because there is nothing else in sight for these buyers to look at,” he said.
With the Easter and ANZAC Day holidays around the corner, plus school holidays, Rigopoulos did not expect stock levels to improve immediately.
PRD chief economist Dr Diaswati Mardiasmo agreed that the Victorian school holidays and the lead-up to Easter have contributed to this week’s auction results.
“We are missing a good proportion of buyers,” she said. “People are still being cautious, and the interest rate cuts are not having a massive impact.”
A New York-style, three-bedroom apartment at the Paris end of the Melbourne CBD passed in at auction at $3.25 million.
Listed with a price guide of $3.5 million to $3.8 million, 45/2 Exhibition Street features heritage metal-framed windows and a glass atrium roof with rooftop views of Melbourne’s city skyline.
“It’s very New York style. There is no other apartment like it in the Melbourne CBD,” RT Edgar’s Chelsie Cargill said.
With only one active bidder, the auction failed to take off and reach its reserve of $3.7 million.
The interested party, who is still negotiating to buy, owns a country property and is looking for a city base.
“Having that country living and being able to go to the city and have that weekend apartment where they can go to the football, dine at restaurants in nearby Flinders Lane, attend events, concerts, and musicals is the main purpose,” Cargill said.
The vendor is looking to relocate closer to her daughter’s primary school in South Yarra.
Despite the interest, Cargill said that selling unique properties can be challenging, but she was confident of a sale.
“I think Melbourne, especially in the city, has been a bit on the nose, but I think it will sell,” she said.