A three-bedroom French provincial style mansion in Moonee Ponds sold for $1.92 million at auction on Saturday, almost $200,000 above its reserve after more than 50 bids from five bidders.
The expansive red-brick corner-block home at 155 Park Street featured multiple living and dining areas, a landscaped garden, and original 1990s carpet, tiles and decor.
Jellis Craig Kensington auctioneer and agent John Morello said it felt a bit “like going back in time”.
With a price guide of $1.65 million to $1.75 million, and a reserve of $1,725,000, he was surprised at the result.
“[The guide] was probably a fair price, understanding that people would need to still spend money on it,” he said.
The property was one of 587 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 59 per cent from 391 reported results throughout the week, while 48 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
At 59 per cent, the preliminary clearance rate is edging up to the 60 per cent threshold generally considered indicative of a balanced market, after weeks in the mid-50s, albeit prices are likely still falling.
While the preliminary rate is generally adjusted down by the end of the month, agents suggested both buyers and sellers were adjusting to a landscape shaped by higher rates, the impact of recent legislative changes to negative gearing and capital gains, and a resulting smaller number of homes on the market.
Morello said bidding on 155 Park Street opened at a “cheeky” $1.4 million, followed by a swift $1.65 million bid from a buyer’s advocate.
Five bidders then traded increments of $20,000 and $10,000 before it was declared on the market at $1.74 million. After more than 50 bids, the property sold to the advocate, acting on behalf of a local family looking to upsize.
Morello said the other bidders were also local families, except for a Sydney-based investor who had flown down for the auction – an unlikely buyer in the price range. The house was sold as part of a deceased estate.
Morello thought while buyers were probably going to need to update the home, a lack of supply and the prestige location had worked in its favour.
“My reading would be volumes are down between 20 and 30 per cent, which is probably why we had a healthy depth of buyers,” he said. “Five bidders at an auction… you don’t see that regularly at the moment.”
In Blackburn, a three-bedroom home on a large corner block sold for $1.62 million under the hammer – less than the $1,631,300 it last sold for in October 2023.
On about 900 square metres of land, 21 Stanley Grove had attracted interest throughout the campaign from developers and builders keen to subdivide, Ray White Box Hill agent Linda Pan said.
“The previous owner got a permit for two [townhouses],” she said, noting the buyers were confident they could get approval for three to four.
The home had a price guide of $1.5 million to $1.65 million, and a reserve of $1.6 million.
Bidding opened at $1.4 million, jumping up in $50,000 and $25,000 increments, before slowing to $10,000, $5000 and then $1000 bids to come to a close.
She said the vendors were upsizing within the area and were realistic about the reserve.
“Good land and nice family homes still sell at a good price,” Pan said, but thought the market was still finding its feet.
“The buyers’ interest to offer, or to buy, is [actually] at a similar level to the vendors’ expectation,” she said, noting uncertainty was making bridging the gap more difficult.
A white weatherboard house in Upper Ferntree Gully sold at auction for $1.3 million, with five bidders travelling $450,000 from the opening bid to the sale price.
With four bedrooms, hardwood floors, and front and rear gardens spread across a 733-square-metre block, 52 Willow Road had a price guide of $1.1 million to $1.2 million and a reserve of $1.15 million.
Ray White Ferntree Gully agent and auctioneer Austen Kosasih said bidding opened at $950,000, and from there it was “a bit of a mixed bag” as five bidders pushed the price up in $20,000 and $10,000 increments, eventually trickling down to $1000 bids before selling.
“[It’s] the only pocket in the suburb that most of the houses are flat,” he said, noting the buyer was downsizing. “They are very highly sought after.”
He said the vendors were selling to finance building on a block they had bought in the area.
Despite Cotality data showing a fall in house values across Melbourne in the June quarter, Kosasih felt the market was in a better place than before the May budget.
“The last three properties I’ve sold have all performed quite well.”
