Source : the age
A renovated Edwardian shopfront and residence with a heritage overlay in Yarraville sold under the hammer for $1.24 million at auction on Saturday, after three young couples pushed the price nearly $200,000 over its reserve.
The charming two-bedroom home with original details and a sleek contemporary kitchen and living space at 57 O’Farrell Street was listed with a price guide of $950,000 to $1,045,000 and had a reserve of $1,045,000.
The property was one of 577 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 54 per cent from 383 reported results throughout the week, while 80 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Selling agent Huss Saad from Village Real Estate said the Yarraville home sale was “a strong auction from the get-go.”
“The opening bid was $55,000 over reserve, at $1.1 million, which I think shocked a few of the other bidders,” said Saad.
“It took about thirty seconds or so for the bidding to start again.”
Bidding quickly rose in $20,000 increments to $1.2 million, then slowed.
Three active bidders took part in the auction; all three were young couples who “had help from Bank of Mum and Dad”, said Saad.
The new owners plan to move in and enjoy the home as it stands, while the sellers, who have lived in the house for 20 years, are relocating to the country.
Both sellers and the new owners were happy with the outcome, as was Saad, who said: “In this market, this result just doesn’t happen.”
The home was originally a bakery built in 1910. “It has a beautiful facade, and the shopfront area of the home is protected by a heritage overlay,” he said.
Interest in the property was evident both in the campaign and in the “huge crowd” that watched the auction.
“It’s a landmark property,” said Saad.
In Strathmore Heights, a family wanting to secure a property in the Strathmore school zone beat two others at auction, paying $1.19 million.
The three-bedroom home at 44 Caravelle Crescent was listed with a price guide of $1 million to $1.1 million and had a reserve of $1.1 million.
Selling agent Rick Langdon from MATTHEWS said: “The property has a pool and is in a great neighbourhood where the kids can play out in the street.”
“This was important to the family,” he said.
Three bidders took part in the auction, including one first-home buyer and another party, who Langdon said came in late and dropped out of bidding early.
The bidding rose in $10,000 increments, then in $15,000 increments, before decreasing to $2000 and $1000.
In Watsonia, a couple relocating from New Zealand beat four others to secure the keys to a two-bedroom house for $916,000.
The home at 12 Cooinda Crescent was listed with a price guide of $790,000 to $840,000 and a reserve of $850,000.
There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
Selling agent Kaylah Guerra from Ray White MacLeod said the couple loved that the home was “move-in ready and didn’t have to do anything to it”.
The auction opened with a bid of $800,000 and rose in “random amounts”.
“The bidding was a bit all over the place,” Guerra said.
Five active bidders took part in the auction: four first-home buyers and the successful bidders, a young couple buying their first home in Australia.
The sellers have just retired and are planning to travel around Australia.
Guerra said the market has been “patchy” over recent months.
“Some properties are selling well, those that are high quality and presented well, but others, more original or knockdown properties, are struggling.”
In Clifton Hill, a two-bedroom ground-floor apartment opposite Darling Gardens sold at auction for $910,000.
The unit at 7/201 Gold Street had a price guide of $850,000 to $920,000 and a reserve price of $900,000.
Selling agent Andre Daniel from Nelson Alexander Fitzroy said the auction “took a bit of time to get going”.
“It opened with a vendor bid of $850,000. We called for $910,000 and had to wait a while.”
The bidding then rose in $10,000 and $5,000 increments.
Two bidders took part in the auction, both first-home buyers.
“The property is unique, a ground-level apartment with a late ’70s/’80s style tucked away at the back with a beautiful courtyard and separate studio space,” Daniel said.
“The sellers did a good job with some cosmetic work, which the buyers appreciated.”
PRD chief economist Dr Diaswati Mardiasmo said the Melbourne clearance rate is sensitive to the cash rate, and this is showing in the data.
“It is positive that it has remained steady, and not severely impacted by the legislated CGT, negative gearing, and SMSF changes,” she said. “I would expect this to remain the same for the next few weeks, especially with school holidays kicking in as well.”
