Investors Battle in Melbourne Auction, Driving Malvern East Home $600K Over Reserve
In Melbourne, competitive bidding at a recent auction has resulted in a home selling for an astonishing $600,000 above its reserve price. The event, held on Valentine’s Day, showcased the vibrant real estate market, attracting a diverse group of buyers.
Melbourne Auction Highlights
During the auction week, Melbourne hosted 828 scheduled auctions. A notable preliminary clearance rate of 68.4% was reported by Domain Group, which analyzed 601 results. However, 72 auctions were withdrawn, impacting the overall figures.
Key Auction Results
- Location: South Yarra
- Property: A two-bedroom apartment at 3/19 Kensington Road
- Selling Price: $730,000
- Guide Price: $600,000 to $640,000
- Reserve Price: $640,000
- Active Bidders: 5
- Viewers: Over 150 groups inspected the property
Interestingly, the winning bidder had not seen the property prior to the auction. Bidding commenced at $640,000 and escalated rapidly to $700,000. Selling agent Luke Saville confirmed the auction’s swift and competitive nature, highlighting the apartment’s appealing layout and lock-up garage as key selling points.
Market Insights
Dr. Diaswati Mardiasmo, chief economist at PRD, emphasized the strength of the current market. Despite recent cash rate hikes, Melbourne’s auction clearance rates indicate a stable environment, maintaining interest from both local and interstate buyers.
Additional Notable Auctions
In Yarraville, a fully renovated four-bedroom Victorian home at 20 Ovens Street was initially passed in at auction for $1.94 million. After private negotiations, it sold for $2 million. This property was listed with a price range of $1.8 million to $1.95 million and had a reserve set at $2 million.
- Buyer Profile: Upsizing family
- Previous Residence: Local townhouse
- Interest: Younger families and couples
Matthew John, selling agent from Buxton Inner West, noted the unique appeal of the renovated home, which underwent significant structural improvements. This trend underscores ongoing demand for quality renovations, regardless of wider market fluctuations.
The recent auctions in Melbourne have highlighted resilience in buyer interest, suggesting that the market remains on a recovery path. Future weeks may continue to show strong demand, unless economic changes dictate otherwise.
