Key points
- The Fitzroy unit sold for well above the $535,000 price expectations.
- A fixer upper in Preston was snapped up by a local family for $817,000.
- Two properties came up for auction in Eltham North with one selling for $1.2 million, and the other passing in at $1.35 million.
Property listings
Byron Bay investors outbid local buyers for a one-bedroom Fitzroy unit at auction on Saturday, pushing the bidding well above the advertised price tag.
The couple paid $620,000 for the apartment at 3/144 Nicholson Street, which had been advertised at $535,000, and bid against two local parties to secure the keys to the unique unit in a converted Victorian-era home.
Buyers braved Melbourne’s icy blast on Saturday to compete for a unique one-bedroom unit in Fitzroy, which sold for $620,000.Credit:Penny Stephens
Though there were multiple bidders, competition was slow to start. Jellis Craig Fitzroy auctioneer and partner Charlie Atkins called for offers, but was forced to make a vendor bid of $510,000, when the crowd, huddling under umbrellas, remained silent.
Offers soon followed suit, and the bidding rose in increments ranging from $20,000 to $1000. A final bid increase of $4000 sealed the deal for the NSW-based buyers in a matter of minutes.
The unit was one of 388 properties scheduled to go under the hammer in Melbourne on Saturday, as the city’s auction market swings back into action for the year.
The Byron Bay couple became the happy buyers, beating out two other bidders for the unique unit in Fitzroy.Credit:Penny Stephens
It comes as buyers and sellers nervously wait to see if the Reserve Bank will lift the cash rate for a ninth consecutive time, when its board meets on Tuesday.
Atkins said while further interest rate rises were still on the cards, the local market was stabilising.
“There is a little bit more stability in the market and some pent-up demand following the summer Christmas break,” he said.
The unit, across from Carlton Gardens, had been popular for its price point and unique features. It was once part of a much larger and grander home, which was built in 1871 and subdivided into five units around 1989, he said.
Affordability was also front and centre for the auction of a fixer upper at 1 Eric Street, Preston, which sold under the hammer for $817,000 to a family who live close by.
They were one of three bidders who competed. All were reluctant to make an opening bid, and proceedings had to start with a vendor bid of $720,000. A flurry of $10,000 and $5000 offers followed, and the home was called on the market at $800,000.
The property sold in the middle of its expected price range of $800,000 to $850,000, which Barry Plant north eastern group director David Moxon said was a very reasonable price for the area.
The home, listed for the first time since 1955, had a lot of original features, including a green kitchen. It was part of a deceased estate.
1 Eric Street, Preston had a lot of mid-century features.Credit:Barry Plant North Eastern
Moxon said the buyers, who wanted a bigger home, were planning to knock down the home and rebuild.
“It’s really about the land value and this was a good price for Preston,” Moxon said. “The buyers really saw value in the location and the land.”
In Brunswick, a two-bedroom home at 95 Wilson Street sold for $1,226,000 after three bidders competed.
Bidding opened at $1.05 million, and a series of $10,000 offers quickly took it to $1.15 million, after which bidding slowed.
Nelson Alexander Carlton North partner and auctioneer Carl Sacco said the buyer intended to rent out the home short term, before moving in themselves.
In the tree change suburb of Eltham North, where buyers flocked during Melbourne’s COVID-19 lockdowns, the market was far more subdued.
A four-bedroom house at 61 Kelway Crescent sold for $1.2 million, after initially passing in on a $1.18 million bid. The sale price was within the advertised $1.15 million to $1.22 million range.
The buyers, a young family, were the only bidders at the auction and negotiated the sale directly after the home was passed in.
Another four-bedroom house at 1 Hollyoak Rise, Eltham North passed in on a bid of $1.35 million, below the $1.38 million to $1.45 million guide.
Though a later offer was made by the lone bidder at the auction, the home failed to sell. It has now been advertised for private sale with a $1.39 million asking price.
Jellis Craig Eltham’s Tom Kurtschenko said the market was very hard to read.
“There are still buyers there, but it’s very noticeable that they don’t have as much money to spend [as interest rates rise],” Kurtschenko said.
A lack of new listings was also changing market conditions locally, giving buyers less choice.
“In postcode 3095, we have 50 listings on the market at the moment, when traditionally at this time of year we’d have 100 or 120,” Kurtschenko said. “There is a shortage of homes.”
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