A young family outbid five others to purchase a four-bedroom home in Richmond for $2,002,000 at a competitive Saturday auction, and paid about half a million dollars more than the property’s reserve.
Six parties traded bids for 4 Vesper Street in front of a 200-strong crowd, and Biggin & Scott auctioneer Andrew Crotty described the atmosphere as “electric” on the auction weekend following Tuesday’s interest rate cut.
The auction began with an assertive $1.65 million bid from the ultimate buyer, well more than the property’s $1.5 million reserve, before a second party countered with a $1.7 million offer.
Four more bidders joined the competition, but slowly dropped out as the price passed $2 million.
The two remaining parties traded $1000 rises, before the highest bidder, acting on behalf of his brother, won the auction for $502,000 more than the reserve.
Crotty said families were attracted to the home, which was listed with a price guide of $1.5 million to $1.6 million, because of its well-sized bedrooms, spacious garden and central location.
A large crowd turned out to watch the auction of 4 Vesper Street, Richmond, which sold under the hammer for $2,002,000 on Saturday.Credit: Paul Jeffers
He added buyers were keen to jump into the market now that interest rates had fallen, despite the modest effect it would have on budgets.
“We’re seeing greater numbers coming through open homes in response to the rate drop, and the word on the street is this could be the bottom of the market,” he said.
Crotty said the deceased estate had been lived in for about 30 years by the previous owners, and last sold for $225,000 in 1995, records show.
The four-bedroom home in Richmond sold for $2,002,000 at a competitive auction on Saturday.Credit: Paul Jeffers
The property was one of 1355 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 66.6 per cent from 1005 reported results, while 111 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Newport, a local family who put forward a bold $80,000 bid to beat two others, bought a four-bedroom home for $2,035,000 at auction.
Three local families vied for the keys to 22 Johnston Street, which had a quoted price range of $1.8 million to $1.9 million.
Jellis Craig listing and selling agent Sam Wilson said bidding started at $1.8 million before rising in $10,000 increments, and quickly surpassed the property’s $1.9 million reserve.
When the price hit $1.92 million, the winning buyer offered up an $80,000 bid. A few smaller bids were traded before the spacious lakefront home sold under the hammer to a family from Newport.
Wilson said the vendors built the architecturally designed residence, located opposite Newport Lake Reserve, less than four years ago. She said it “ticks all the boxes for families”.
“It’s a really large home, it’s got really good bedroom and living spaces,” she said. “And the spot there, opposite the lake, is such a beautiful area.”
In Ivanhoe, a downsizer couple won the keys to a three-bedroom home for $1.82 million and paid $220,000 more than the reserve in a rapid-fire auction.
About six interested parties turned up for the auction of 31A Sherwood Road, Nelson Alexander auctioneer and listing agent Mark Verrocchi said, but just two ended up putting forward offers after a high opening bid knocked other potential buyers out of the race.
The buyers opened the auction with a bid of $1.6 million, at the top end of the $1.5 million to $1.6 million quoted price range. The first bid met the vendor’s reserve.
A second party, a young family, countered with a $20,000 bid. The two parties quickly traded bids of $20,000 and $25,000 until the price hit $1,805,000.
The downsizer couple, from Carlton North, then put forward a $15,000 bid to secure the stylish property and beat the family moving from Melbourne’s north-east.
31A Sherwood Road, Ivanhoe, sold for $1.82 million at auction on Saturday.
Verrocchi said sentiment among buyers had improved following a rate cut, adding that the other bidders didn’t stand a chance during this “rapid-fire” auction.
“It was a young family against the boomers, and the boomers ended up winning again,” he said.
Verrocchi said the vendors were downsizing to a smaller property in the area.
In Coburg, two local families battled it out in an “aggressive” auction for a five-bedroom home, which sold under the hammer for $1.85 million.
The auction of 16 Glencairn Avenue opened on a bid of $1.65 million, at the bottom end of the $1.65 million to $1.75 million price guide.
The families then traded $10,000 and $5000 bids, and quickly drove bidding past the property’s $1.7 million reserve.
When the price hit $1.81 million, the buyers placed a $40,000 knock-out bid, securing the property.
“[The auction] was so aggressive … it was almost like rapid fire,” Ray White auctioneer Jamil Allouche said.
“I’m seeing a bit more confidence after the rate drop.”
Allouche said the property, a deceased estate, had been in the same family for about 70 years and the vendors were thrilled to see a new family make it their home.