Source : the age
A two-bedroom villa in Kingsville, in Melbourne’s inner west, sold at auction for $625,000 on Saturday when an investor paid $60,000 over reserve to beat two first home buyer couples.
Part of a block of nine villas just off Geelong Road, the 1/11 Bishop Street property features Tasmanian hardwood floors, a lock-up garage and a private deck and courtyard at the rear, complete with artificial grass.
Buxton Inner West agent and auctioneer Matthew John said he opened the auction with a vendor bid of $525,000, at the bottom of the guide (between $525,000 and $575,000).
After a genuine bid of $535,000, bids went up in increments of $10,000 before hitting the $565,000 reserve. The auction continued in $5000, $3000 and $2000 bids, until a last $5000 bid from the investor knocked out the other bidders.
“It’s good to see that they are still investors in the market,” John said.
The property had been the vendors’ first home, and John said they were now upsizing to a three-bedroom home nearby as their family expanded.
Although the buyer was an investor, John said first home buyers were getting increasingly confident as conditions in the market were in their favour.
“[It’s] still a little bit patchy,” he said. “But I feel like we’re starting to see a bit more confidence come back.”
The property was one of 877 scheduled to go to auction in Melbourne this week.
In Caroline Springs, a four-bedroom house failed to sell at auction and passed in at $770,000, but is currently the subject of negotiations.
Close to Kororoit Creek, the 34 Blakeville Drive house had a price guide of $790,000 to $830,000 and a reserve of $790,000.
Harcourts Rata & Co agent and auctioneer Nathan Hunt said bidding opened at $750,000, with two first home buyers trading $10,000 increments to $770,000, when the auction stalled.
Hunt said he’d had a lot of interest from first home buyers, who were attracted to the property’s proximity to schools, lakes and shops, and the fact it was close to Ballarat Road and the Caroline Springs train station.
The vendor is an investor, and Hunt said there was still that potential given the amenities.
“For a share house or Airbnb, being four to five bedrooms,” he said, noting it was also ideal for families.
“It’s just a bit short from our desired result there at the moment.”
