By Sarah Webb
A two-bedroom Victorian terrace in Thornbury fetched $1,291,000 at auction on Saturday, more than double what it last sold for in 2012.
A dad, acting on behalf of his overseas son, outbid four other buyers to nab the keys to the popular period home at 59 Gooch Street.
Bidding kicked off at $1.1 million and rose in $10,000 and then $5000 increments to quickly reach the $1.12 million advertised reserve price.
By the end, the father was bidding in $500 increments, which was enough to prompt the underbidders, a downsizing couple, to bow out.
Selling agent Tom Alexiadis from Nelson Alexander Northcote said the buyer was thrilled.
“It was 2am where the son was, and he was absolutely stoked. I doubt he was able to sleep after that,” Alexiadis said.
The strong result was more than double the $625,000 the property last traded for, and was testament to growing market confidence and a lack of stock, Alexiadis said.
Auctioneer Tom Alexiadis at the auction for 59 Gooch Street, Thornbury on Saturday.Credit: Luis Enrique Ascui
“Anything that’s renovated is doing well,” he said, adding the home’s proximity to High Street was also a big drawcard.
The property was one of 844 Melbourne homes scheduled to go under the hammer on Saturday, the first big auction day for the spring selling season. By evening, Domain Group recorded a preliminary auction clearance rate of 67.1 per cent from 563 reported results, while 52 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Airport West, an unrenovated, mid-century home also proved popular with buyers, selling for $991,000 at a “firecracker” auction.
Six bidders battled for the humble three-bedroom home at 33 Etzel Street, with the winning couple throwing down small sums to beat an underbidder who wanted to develop the 640-square-metre block.
Bidding began at $750,000 and a strong second bid of $830,000 immediately followed. A $10,000 increase then took the bidding to the $840,000 reserve. Bidding continued in smaller increments from there, dropping as low as $500, before the fall of the hammer. The property had been guided at $795,000 to $870,000.
“It went off like a firecracker,” said Stefan Stella, of Ray White Pascoe Vale. “To be honest, I thought this auction would be touch and go because it was unrenovated … and that unrenovated stock is typically harder to sell right now.”
“But it was the land and the location [that resulted in such a strong result].”
Stella said the buyers lived around the corner and had spent months house hunting in the hopes of upgrading from their first home.
“I actually sold them their last property in 2018, so it was incredible to have the opportunity to help them again,” he said.
“They had missed out on quite a few too, and I had started jokingly calling them the bridesmaids.
For the vendors – six siblings who’d grown up in the brick cottage – the auction was just as significant.
“Their parents bought it back in 1988 and it was their only family home. But mum and dad had passed away,” Stella said.
Back in Thornbury, at 32 Alexandra Street, a first home buyer forked out $1,875,000 on a striking three-bedroom house, which sold for $185,000 above reserve. It had been guided at $1.55 million to $1.69 million.
Sam Rigopoulos of Jellis Craig Northcote said bidding started at $1.6 million and four parties competed.
“But it took a while for the buyers to get into action. I was about to pass it in when another buyer got involved. It then went up in $20,000 increments until $1.8 million before it dropped to $1000 bids and then $500.
“From there it dragged on. The underbidder was an advocate and she was working the phone pretty hard on behalf of her buyer.”
Rigopoulos said the successful first home buyer was purchasing the home as an investment property, before heading overseas for work.
“He wanted to get in before the market starts to boogie again,” Rigopoulos said.
“This was a popular house in a great spot with a great renovation. It deserved a bit of competition, and it was a good outcome for the vendors who have owned it for 10 years. They paid $992,000 back in October 2013, so it almost doubled in price.”
In Hampton, at 1 Swyer Street, a three-bedroom brick house on a 613-square-metre block sold to a developer for $1.62 million, $10,000 over reserve, in post-auction negotiations.
The auction opened with a $1.5 million vendor bid, which was countered with an offer of $1.51 million by the sole bidder at the auction. The property was passed in and negotiations ensued.
Selling agent Spiro Vasiliadis of Jellis Craig Brighton said the buyer wants to develop the block. It had been guided at $1.5 million to $1.6 million.
“Getting a home here in Hampton for under $2 million is difficult … and the buyer was talking about the fact this is an up-and-coming area of the suburb because it’s still affordable.”
As for the vendors, Vasiliadis said they had held onto the home for 70 years.