Expat pays $965,000 for a converted mechanic’s shop with soaring ceilings

The buyers are an Australian couple who are currently residing in the United States and are returning home to live.

The property was one of 1500 scheduled to go up for auction in Melbourne last week. As of Saturday evening, Domain Group had recorded a pre-auction approval rate of 65.6 per cent from 1080 results reported during the week, while 129 auctions had been withdrawn. Withdrawn auctions are counted as unsold properties when calculating the liquidation rate.

Elsewhere, a two-bedroom home built in the 1940s on a former racetrack site in Richmond as part of the suburb’s first public housing sold for $1.31 million on Saturday.

The brick clinker house at 9 Longfield Street had a price range of $1.2 million to $1.3 million and a reserve of $1.275 million.

Selling agent Edward Hobbs, of Biggin & Scott Richmond, said two young couples competed for the property and opened proceedings with an offer of 1.2 million.

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“Bids increased in $10,000 and $20,000 increments until it sold,” he said.

The bidders were a local couple who wanted to rent the house, renovate it and move in at a later date. The successful bidders, also a young couple, are considering moving directly.

“It was absolutely fortunate that Burnley was in your backyard, in a heavily guarded pocket and in a quiet cul-de-sac,” Hobbs said.

“It’s a great place to raise a family and it also has a really interesting history; the seller, who has owned the property for 31 years, loved sharing it with the new owner, a young couple, one of whom is 31, who joked that he bought the property when he was born.”

In Fawkner, a first-time homebuyer couple secured the keys for $1,002,000 by paying $122,000 over the reserve of a family home.

Number 23 Lowson Street’s price guide was $800,000 to $850,000 and its reserve was $880,000.

There is no legal requirement for a seller’s reserve to match their property’s price guide.

The renovated three-bedroom property sits on approximately 662 square metres, with lush outdoor spaces.

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“The biggest draw to the property was the renovated kitchen, but especially the landscaping because the owner is a landscape architect. He did a wonderful front and back area,” said selling agent Raphael Calik-Houston of Ray White Coburg.

Six active bidders participated in the auction, which featured an ice cream truck on site and in front of a large crowd.

“It opened with a buyer’s attorney bid of $800,000, and then bids of $20,000 and $10,000 increased until it sold,” Calik-Houston said.

Both the winning bidder and the new owners were young couples buying their first home.

“The winning buyer is a couple renting a home in Brunswick,” Calik-Houston said. “He was bidding over the phone since he was at the cricket match.”

PRD chief economist Diaswati Mardiasmo said the Melbourne market remained stable.

“I would say a large percentage of buyers will be first home buyers taking advantage of the government’s first home purchase programme,” he said.

With only a few auction weekends left in 2025, Mardiasmo does not believe market conditions will change much during the remainder of the year.

“With the RBA holding on to cash rates, there is no urgency for buyers,” he said.

“Maybe if they really want to get in before Christmas they can, but that wouldn’t be bad either.”