By Abbir Dib
A young couple renting in Frankston North paid $900,500 for a family home in the suburb at a heated auction on Saturday, beating eight other bidders, including four investors from New South Wales.
The four-bedroom property at 10-11 Timbertop Court drew a crowd of about 75 people.
It was listed with a price guide of between $700,000 and $770,000. The reserve was set within that range, though the exact figure was not disclosed.
Situated on a 1126-square-metre block, the home attracted a range of other bidders, including a mix of first-home buyers and downsizers.
Bidding opened at $500,000 and, despite a slow start, quickly gained momentum. The interstate investors dropped out at around $840,000, leaving local buyers to battle it out.
A local couple with two dogs won the bidding war and plan to live in the home.
The underbidder, a man in his eighties, eventually bowed out after several $100 raises, shaking hands with the winning buyers at the end of the auction.
Mark Burke from OBrien Real Estate Frankston said the auction was one of the most competitive in the area recently, driven by the property’s size, location and potential for development.
“That little pocket has always had slightly nicer homes in it, and] the land is a little bit bigger than most blocks. The fact that you could, which is sad in a way, pull it down and build four units, or even land bank it, and in the next seven to 10 years, it would probably double [in price],” he said.
The home had been owned by the same family for 40 years. The vendors, a couple, who were the original owners, are moving into a retirement village.
Burke said low stock levels are fuelling buyer competition.
“Stock is the lowest I’ve seen in the last four or five years,” he said. “The competition is extra hot [at the moment].”
The property was one of 393 scheduled to go to auction in Melbourne on Saturday, a quiet long weekend.
In Keysborough, a family home sold for $845,000 in a fast-paced auction.
Two buyers went head-to-head for the four-bedroom house at 4 Barlow Street, pushing the price above its $790,000 reserve.
The house was listed with a price guide of between $740,000 and $799,000.
Bidding opened at $700,000 and climbed rapidly in $20,000 increments before narrowing to smaller increments. A local young family with two small children made the winning bid, beating out a first-home-buying couple.
The vendors had previously lived in the house before renting it out. They decided to downsize into a smaller home nearby.
Ozan Kanbur from Buxton Keysborough said the vendors had a failed campaign with another agency before relisting the property.
“When we put the property back on the market, we just did a bit of a spruce-up, a touch of painting and styling, and then all of a sudden we sold it in three weeks,” he said.
Kanbur said the market had been gaining strength in recent months.
“Since late last year, the market has been quite strong with talks of interest rates going down, and with the first interest rate decline, people have been excited.”
A new four-bedroom home in Burwood fetched $1,505,000 at auction, drawing five competitive bidders.
The year-old duplex at 10A Poole Street was listed with a price guide of between $1.3 million and $1.39 million. The reserve was set at $1.4 million.
The auction began with a $1.2 million bid and quickly escalated. As the price neared $1.5 million, the winning bidders, a young couple from South Melbourne, outbid their competition. The underbidder, another young couple, were bidding from overseas while watching a livestream of the auction.
Hans Liu from Ray White Burwood said well-presented turnkey properties are attracting significant buyer interest. He said the property’s proximity to amenities made it appealing to buyers.
“It’s close to everything, Deakin University, Presbyterian Ladies College,” he said.
AMP chief economist Dr Shane Oliver said Melbourne’s property market has been mixed recently.
“[The market] got a bit of a boost from the interest rate cut that we saw back in February, but then it had started to soften a little bit.”
Oliver said factors such as the election and the US trade war could be creating some uncertainty.
“The election often creates uncertainty, although I don’t think that’s been a big factor this time. Both sides of politics are offering significant support for first-time buyers. The other big factor has been the trade war with the US, which has caused some concern about weaker economic growth in Australia.”
“Winter is typically a softer period for the property market, so we may see a gradual pickup in clearance rates, but volumes will likely be lower,” he added.