Herald Sun Real Estate auction blog: Livestreams and rolling updates from the auction market
A glamorous Hawthorn house built three-storeys high has sold for a massive $7m in post-auction negotiations, more than $1m beyond what the home had been expected to make.
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A newly-built Hawthorn house on a compact block has sold for an eye-watering $7m in a high-stakes post-auction deal.
It’s the latest in a series of strong results hinting buyers have backed themselves in to get their property goals sorted before the Reserve Bank meets again in August, after inflation figures from the Australian Bureau of Statistics released this week showed an unexpectedly strong rise that could precipitate a future rate hike.
If it raises the cash rate by 0.25 percentage points, the RBA could slash homebuyer borrowing power by $11,000 if they had previously been cleared for a $500,000 loan, or $22,000 from $1m.
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One of the first major signs of whether buyers are weighing the possibility in will emerge today as the largest number of auctions are called since the inflation data was released.
See how the market is responding live via auction streams here, courtesy of Gavl, or catch up with market updates on particular sales below.
Homebuyers haven’t had to grapple with an interest rate hike eroding their finances since November last year, the longest stretch since a more than 11-year run of no interest rate hikes that ended in May 2022.
But it might be on the cards again, with Australian Bureau of Statistics data showing the monthly consumer price index, a measure of goods and services cost across the economy, rose to 4 per cent in the year to May.
AUCTION REPLAYS AND RESULTS
Economists from Judo Bank, UPS and Deutsche Bank have all indicated they believe there could now be a rate hike in August.
PropTrack economist Anne Flaherty said while for some buyers the prospect of a further interest rate hike would be unsettling enough to make them reconsider, others could take the view that waiting for a rate cut could lead to paying more as prices rise.
Either way, Ms Flaherty said the Reserve Bank’s next decision in August could now be weighing on homebuyers’ minds for the coming weeks.
MICHAEL HILL CLOSING ON DEAL
McGrath South Yarra agent Charlie Clemons said he was expecting activity for the 2/269 Bluff Rd, Sandringham, townhouse being sold by former World Cup cricketer Michael Hill when it went under the hammer at noon today.
And while he did get some, it wasn’t enough to get a sale for the home with a $940,000-$1.01m asking price.
The property received a pre-auction offer at the base of the guide, and negotiations continue this afternoon.
Hill captained Australia’s squad at the 2008 cricket Under-19 World Cup and also played for the Melbourne Renegades in the Big Bash League, while his home has since become an investment tenanted by other elite cricketers including Cameron McClure and Todd Murphy.
7 CHARLES ST, HAWTHORN
A striking, new Hawthorn showpiece expecting bidding from $5.5m-$6m when it went to auction has sold for $1m more after high-stakes post-auction negotiations.
Jellis Craig Boroondara’s Mike Beardsley put the four-bedroom home at 7 Charles St under the hammer at 11am, and had the attention of three bidders among a crowd of about 150 that filled the home’s main living area amid poor weather outside.
Bidding kicked off at $5.8m, but the home passed in a short time later and a family and a professional both looking for a new home thrashed it out — eventually leading to the home selling for $7m.
Mr Beardsley said it was “one out of the box” and equated to about $22,000 a square metre, which he believed to be a record for Hawthorn’s popular Grace Park estate area.
Remarkably, the home was set on just 312sq m — making its block smaller than many being created in new housing estates on Melbourne’s fringe.
With buyers leery of building a new home, he said the result showed what could be achieved for those who took the chance on a new build or a high-end renovation in the area.
“I wasn’t surprised there was competition for it, there’s going to be new and unprecedented levels coming into the market for homes like this,” Mr Beardsley said.
“So a new build or renovated period home will certainly be well desired.”
The David Niel architectural design opposite popular Grace Park includes a lift between its three levels, extensive imported materials used throughout the home and even a designer Apaiser ensuite.
10 BONAR ST, HEIDELBERG HEIGHTS
Three bidders emerged for this white weatherboard 1950s classic in Heidelberg Heights, and pushed it six-figures past its reserve.
The 10 Bonar St home sold for $1.275m amid heated demand, despite somewhat cooler weather conditions.
Nelson Alexander’s Nick Smith had been expecting interest after inspections by 70 groups, but going $160,000 above its $1.15m reserve had been less of a consideration.
On a 792sq m block it had buyers’ interest given the scope to extend to add value in the future.
A mix of couples and families pursued the home.
52 BERKELEY ST, HUNTINGDALE
A homebuyer family who has spent the past 13 years saving without taking any holidays so they could buy a home ended the long journey at auction today.
Ray White’s Peter Liu said the would-be buyer was among four groups to bid for 52 Berkeley St, Huntingdale, taking the home to a $1.321m sale.
The price was $170,000 more than the home’s reserve, and far above what the owners paid for it in 2000.
“The winning bid went to a family, the buyer said she had been saving for 13 years with no holiday to buy a house,” Mr Liu said.
46 DOMAIN DRIVE, HILLSIDE
A Hillside home has unexpectedly become the suburb’s newest million-dollar residence.
Listed with an $860,000-$920,000 quote range, 46 Domain Drive was always expecting more than the wider suburb’s $775,000 median house price.
But the immaculate four-bedroom home being sold by Barry Plant’s Andrew Koulaouzos went well beyond.
At least four bidders pursued the home, with rapid-fire bidding driving it onto the market shortly after it hit the $920,000 top of its range.
Remarkably a new bidder joined in at $986,000 and despite offers slowing to $1000 increments, the sum kept rising — eventually hitting $1m.
And then inching past the seven-figure mark, with a handful of cheeky bids waiting for the last possible moment before it was knocked down.
When the auction hammer did finally came down it had reached $1.005m.
18 HIGGS AVE, MILL PARK
This three-bedroom brick house was at the top of its $650,000-$700,000 price guide from the first bid as a bidder offered $700,000 at the start of the auction.
But Barry Plant’s Jay Moxon had about three groups in the hunt and the price for the 18 Higgs Ave, Mill Park, kept right on rising in $10,000 increments.
The auctioneer called it on the market at $750,000, and two bids later it was sold at $770,000.
Set on a 562sq m block the home is walking distance to the Stables shopping centre and came with a backyard spa bath.
2/1318 NEPEAN HWY, CHELTENHAM
A main road location did little to deter bidders in Cheltenham, with at least three of them among the crowd that snuck into a sleek townhouse as it went under the hammer.
Held indoors due to dreary weather, the auction for 2/1318 Nepean Hwy had barely started before Ray White’s Angela Limanis got her first offer at $700,000.
It was short of the three-bedroom home’s $720,000-$770,000 asking price, but was quickly followed by a $10,000 rise.
Ms Limanis called the home on the market just past the top of the quote at $785,000.
Three bids later it was sold to a young couple for $810,000.
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Originally published as Herald Sun Real Estate auction blog: Livestreams and rolling updates from the auction market
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