Historic South Melbourne home tops auction results with $10.1m sale
The strong $10.1m sale of a stately South Melbourne trophy home has topped weekend auction results, against an emerging backdrop of weakened clearance rates and prices.
The strong $10.1m sale of a stately South Melbourne trophy home has topped weekend auction results, against an emerging backdrop of weakened clearance rates and prices and rising interest rates.
The grand 1867 Howe Crescent home came with a pre-auction $8.2m to $8.8m price guide from its Jellis Craig Port Phillip selling agents Simon Cowling and Greg Hocking.
The two storey Italianate-style property was called on the market at $9.1m and sold to a family who will be moving from South Yarra. Just two bidders participated.
The house was sold by HWL Ebsworth lawyer Marko Misko, an influential Ukrainian community leader, and wife Danielle, who had paid $3m in 2005.
Competing Bids recalls at its 2005 auction there was not one bid for the home that dates back to the 1860s, designed by William Ellerker for surgeon James Barrett and his wife Catherine.
It was extended in 1877 to house their family of eight, five of whom became doctors. It was their daughter Edith, who helped to establish the Bush Nursing Association of Victoria in 1910, who sold it in 1921.
It was turned into five apartments by the early 1960s. In 1971 the mansion was bought by the Royal Australian Institute of Architects for $74,000 and turned into offices.
They sold in 1991 for $627,000 to Wallage Recruitment founder David Wallage and his wife Patricia who converted the stables into a modern residence while using the main building as corporate headquarters.
The mansion stands on a site of 690sq m, close to Cecil St.
The suburb record was achieved two years ago on the same street at $12.5m.
–
Listings withdrawn
The withdrawal rate is high, with 100 listings pulled from their scheduled weekend auction across Melbourne, reflecting around 8 per cent of the total offerings.
The auction of mid-century-inspired Brighton house by architecture firm mckimm, with classic features including an internal courtyard, sunken lounge and exposed materials didn’t happen.
A private auction had been scheduled by Fredman Property Group, but listing agent Joel Fredman now has a May 10 expression of interest campaign, while sticking to the $7m to $7.7m price guidance.
The vendors, Julianne Godby and her husband Martin Godby, who established Chapel St fashion boutique Dakota501 in the 1970s, are downsizing to Flinders.
Of the 1051 results collected so far by CoreLogic, 68 per cent have been successful, similar to the prior week’s preliminary rate, which was revised down to 63 per cent at final figures.
Over the same week last year, 75 per cent of auctions were successful.
–
Castle the king
Sydney’s top sale was in Castle Cove. It sold for $5.65m, $400,000 over reserve, with five registered buyers.
Craig Ireson of McGrath said the Padulla Place property was popular due to the rare elevated outlook across Middle Harbour. It was offered for the first time since its construction in 1962.
The buyer was North Bondi-based architect Rick Vernon.
“I will apply my architectural skills and passion bringing this house into the 21st century whilst retaining that which made it so compelling from the first moment I experienced it,” Vernon told Competing Bids.
The adjoining property, a house designed by Harry Seidler in 1982, fetched $4,855,000 last June. The Seidler house is encumbered by heritage restrictions while the weekend offering was free of them.
There were 907 auctions held across Sydney, with the clearance rate slipping to 62 per cent of the 703 results collected so far. The previous week recorded a preliminary rate of 64 per cent, revising down to 59 per cent at final figures.
“Sydney’s final clearance rate has been below 60 per cent for the past two weeks,” Eliza Owen at CoreLogic noted.
–
Busy Brisbane
Across the smaller capitals, Brisbane was the busiest auction market with 178 homes taken to auction, followed by Adelaide’s 156 and Canberra with 142 offerings, including an owner-built 1961 Deakin home on a 1567sq m National Circuit block that fetched $4,551,000 through Belle agent Louise Harget. It bettered a $4.2m sale on Mugga Way, Red Hill through Blackshaw agent Mario Sanfrancesco.
Adelaide recorded the highest clearance rate at 80 per cent, followed by Canberra (69 per cent) and Brisbane (69 per cent).
Brisbane’s top sale was a four-bedroom, four-bathroom home that fetched $4.046m at Eight Mile Plains, an acreage 13km from the CBD close to the Pacific Motorway. The luxury resort-style home set on 4009sq m was offered through Place Sunnybank selling agent Owen Chen whose vendors were described as “caravan people” wanting to travel around Australia before settling down again.
There had been over 7000 views online of the realestate.com.au listing.
Auctioneer Mark Frater took the first bid at $2.8m, with the next offer at $3m. At $3.89m it was announced on the market, with The Courier Mail’s live video coverage showing the crowd clapping when bidding hit $4m. After seven further bids it was knocked down at a record price. It last sold at $2.2m in 2009, having been built in 2005.
–
Big gains
Brisbane has been the strongest capital city property market over the past year, according to the REA Group PropTrack’s April index, with its 26 per cent annual gain. It just outperformed Adelaide on 24 per cent. Sydney sits at 13 per cent annual growth and Melbourne at 9 per cent.
Australian home prices were flat in April, increasing by just 0.13 per cent, with prices down 0.1 per cent in Sydney and 0.44 per cent in Hobart, the first falls since the pandemic began, PropTrack economist Paul Ryan noted. He added price growth continued to be strong across regional Australia – up 23 per cent annually, compared with 14 per cent in the capitals.
Sydney buyers agent Peter Kelaher noted: “A-grade stock is still going extremely well, B-grade well, and anything that is compromised in any way, which I call C-grade, is getting smashed. Vendors still have their head in a 2021 market. Reality will hit, but more so later this year.
“It means a lot of failed auctions, both on the day, and pulled before auction dates, and price reductions left right and centre.
“For the A-grade and B-grade higher-end property, the competition is still there, just not as strong as last year.”
–
Still waiting
No success yet for Gold Coast developer Tony Smith who tested the Gold Coast beachfront market when 442 The Esplanade, Palm Beach was scheduled for Friday auction through Kollosche agent Troy Dowker.
The 824sq m double block now comes with an $8.795m asking price.
Smith paid $5m in 2021 for the front block and $1m for the highway block.
It was initially listed last September with a $10.3m asking price.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout