A “totally unrenovated” house has beaten its reserve by $320,000 at auction, as Melbourne agents cry out for more listings to meet building demand.
A young family paid $3.82 million for 19 Chesterfield Ave, Malvern, and will now sink some more money into renovating the five-bedroom house.
RT Edgar Toorak director Jeremy Fox said the property hit its $3.5 million reserve in one bid, with four parties vying for it before the hammer came down.
CoreLogic recorded a preliminary 73.2 per cent clearance rate from 501 auctions.
If the figure holds above 70 per cent by the time it’s finalised on Thursday, it’ll mark the third straight week where seven of 10 Melbourne auctions have resulted in sales.
CoreLogic’s weekly auction report said this trend implied the market was “responding to the stimulus of lower mortgage rates, improved sentiment following the federal election and lower serviceability tests for borrowers, as well as low advertised stock levels”.
Mr Fox said 19 Chesterfield Ave had attracted buyers with its north-facing 607sq m block in a “great family area” near schools and parks, where heritage overlay restricted development.
A lack of housing stock on the market had also helped the result.
“I’m scratching around trying to get people to commit to sell. Everybody’s waiting for the market to improve,” he said.
“We’re at the bottom of the market, so it’s all going to start to improve.”
CoreLogic records show the property had previously fetched $758,500 in 1998.
Advantage Property Consulting director Frank Valentic said market conditions had “definitely improved”, with open for inspections and auctions across Melbourne attracting big numbers.
He said about seven bidders competed for a two-bedroom apartment with a “wow factor” courtyard at 6/5 St James Rd, Armadale, pushing it to a $774,500 sale against a $680,000 reserve.
Mr Valentic also reported seeing five parties bid on another two-bedroom unit at 4/35 Walsh St, South Yarra, which sold for $875,000 — $125,000 above reserve.
First-home buyers dominated both auctions.
And three bidders sent a two-storey, two-bedroom townhouse at 2/120 Mitford St, Elwood $141,000 past its reserve to $1.311 million, Mr Valentic said.
National Property Buyers director Antony Bucello said the Melbourne market was “out of balance”, with demand far outweighing supply.
“The only thing that will balance the market is more stock,” he said.
He saw that demand in action at the auction of a 1950s freestanding three-bedroom unit at 1/12 Rowland St, Bentleigh East, which attracted five bidders to sell for $865,000 — almost $100,000 above reserve.
In Nunawading, six bidders went after the new three-bedroom house at 2/13 Browns Rd. It flew $82,500 past reserve to $892,500.
“Because of low levels of stock, the competition for properties is fierce,” Ray White Ringwood auctioneer Chris Watson said.
“So if you’re thinking of putting your home on the market, there really is no better time than now.”