“There are a lot of properties where the sale has been negotiated prior to auction, or passed in and happening after auction,” he said.
“Renovated family homes through the inner west are still performing quite strongly but the rest of the market, it can be a little bit hit-and-miss.”
In Sunshine West, an investor outbid two first home buyers to purchase a 1960s style three-bedroom house for $735,000 at auction.
Ray White auctioneer Marcus Fregonese said bidding for 43 Mailey Street, a deceased estate, opened with an offer of $650,000 from a hopeful first home buyer. The price climbed above the $700,000 reserve as the other two parties traded bids.
Both first home buyer bidders eventually bowed out but Fregonese managed to persuade one of them to offer up an extra $2000 in the final moments of the auction.
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But it was not enough as the home ultimately sold under the hammer to an investor, who has plans to give the retro property a modern facelift before renting it out.
Fregonese said this was the first time in months he had seen an investor bidding at auction.
“We’re finding we’ve got investors leaving the market …this sort of bucks the trend,” he said.
“We’re getting young couples and first time owners coming in from the west and the north – Abbotsford, Collingwood, Carlton, Brunswick – they’re coming out to Sunshine now just for value for money.”
Meanwhile, another investor, from Sydney, outbid two couples to purchase an architect-designed home in Abbotsford for $1,575,000.
Bidding was initially slow to start for the two-bedroom house at 112 Park Street, with Jellis Craig auctioneer Lee Muddle placing a vendor bid of $1.4 million to get the ball rolling.
One party then offered up a $10,000 bid where the price slowly crept up to $1.47 million before the auction paused for a short break.
When the auction resumed, the first bidder dropped out of the race and another two parties traded bids of $10,000 and $5000 before it was sold under the hammer to the ultimate buyer.
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The buyer, who was bidding from Sydney via video call and has plans to rent out the architect-designed home, paid $75,000 above its $1.5 million reserve.
Muddle said the vendors, who are looking to upsize, renovated and extended the stylish two-bedder with the help of Melbourne-based Tom Eckersley Architects.
In Brunswick West, a downsizer couple relocating from Melbourne’s east to the inner north purchased a three-bedroom home for $1.29 million following a competitive auction.
Six parties turned out to bid on 51 Burnell Street, but fierce competition from two bidders quickly knocked everyone else out of the race.
The ultimate buyers immediately kicked off the auction with an opening bid of $1.15 million before a young family quickly put forward a $10,000 raise.
Ray White auctioneer Jamil Allouche said the four other bidders didn’t have a chance, as the two active parties kept throwing out offers thick and fast.
“They competed furiously against each other,” Allouche said. “The other bidders just literally had to stand back and watch.”
The downsizers and young family continued to trade $10,000 bids back and forth, driving the price well above the property’s $1.19 million reserve, before bidding slowed to $5000 increments.
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The Californian bungalow sold under the hammer to the downsizers, from Mitcham, for $100,000 above reserve.
Allouche said the buyers were thrilled to moved into the area.
The property was previously rented out by the vendors.
Source Agencies
