Young couple pay $1.24 million for Yarraville renovated house at auction
A refurbished Edwardian store and residence in Yarraville sold at auction for $1.24 million on Saturday after three young couples increased the price by nearly $200,000 above its reserve.
The stunning two-bedroom home at 57 O’Farrell Street, with original details and a stylish, contemporary kitchen and living area, was listed with a price guide of $950,000 to $1,045,000 and had a reserve of $1,045,000.
The property was one of 577 properties scheduled to go up for auction in Melbourne last week. On Saturday evening, Domain Group recorded a pre-auction approval rate of 54 percent from 383 results reported during the week, while 80 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the liquidation rate.
Selling agent Huss Saad of Village Real Estate said the Yarraville home sale was a “strong auction from the start”.
“The opening bid was $1.1 million, $55,000 over the reserve, which I think shocked a few of the other bidders,” Saad said.
“It took about thirty seconds for the bidding to restart.”
Bids rose quickly in $20,000 increments to $1.2 million, then slowed.
Three active bidders participated in the auction; All three were young couples “receiving help from the Bank of Mom and Dad,” Saad said.
While the new owners plan to move into the house and enjoy it as it is, the sellers who have lived in the house for 20 years are also moving to the country.
Both sellers and new owners were happy with the result, with Saad saying: “This result cannot happen in this market.”
The house was actually a bakery built in 1910. “It has a beautiful façade and the front of the house is protected by a heritage cladding,” he said.
Interest in the property was clearly visible both in the campaign and in the “huge crowd” that watched the auction.
“This is a landmark property,” Saad said.
In Strathmore Heights, a family looking to secure property in the Strathmore school district paid $1.19 million, beating two other families at auction.
The three-bedroom home at 44 Caravelle Crescent was listed in the price guide for $1 million to $1.1 million and had a reserve of $1.1 million.
“The property has a pool and is in a great neighborhood where kids can play in the street,” said selling agent Rick Langdon of MATTHEWS.
“This was important to the family,” he said.
Three bidders participated in the auction; One of them was a first-home buyer, and the other was a person who, Langdon said, arrived late and left the bidding early.
Bids rose in $10,000 increments, then $15,000 increments, then dropped to $2000 and $1000.
In Watsonia, a couple who moved from New Zealand beat four other people to get the keys to a two-bedroom house for $916,000.
The home at 12 Cooinda Crescent is listed with a price guide of $790,000 to $840,000 and a reserve of $850,000.
There is no legal requirement for a seller’s reserve to match their property’s price guide.
Selling agent Kaylah Guerra of Ray White MacLeod said the couple loved that the house was “move-in ready and they didn’t have to do anything.”
The auction opened with a bid of $800,000 and was raised by “random amounts.”
“The bids were a bit over-the-top,” Guerra said.
Five active bidders participated in the auction: four first-home buyers and the successful bidders, a young couple buying their first home in Australia.
Sellers have just retired and plan to travel around Australia.
Guerra said the market has been “erratic” in recent months.
“Some properties are selling well, those that are high quality and well presented, but others that are more original or rundown properties are struggling.”
A two-bedroom ground floor flat opposite Darling Gardens in Clifton Hill sold at auction for $910,000.
The price guide for the unit at 7/201 Gold Street was $850,000 to $920,000, with a reserve price of $900,000.
Selling agent Andre Daniel, of Nelson Alexander Fitzroy, said the auction “took a while to get going”.
“It opened with a seller’s bid of $850,000. We asked for $910,000 and had to wait a while.”
The bidding then increased in increments of $10,000 and $5,000.
Two bidders participated in the auction, both first home buyers.
“The property is unique, a ground floor flat in late 70s/80s style with a beautiful courtyard to the rear and a separate studio area,” Daniel said.
“The sellers did a good job with some cosmetic work that buyers appreciated.”
PRD chief economist Dr. Diaswati Mardiasmo said Melbourne’s liquidation rate was sensitive to the cash rate and this was evident in the data.
“It is positive that it remains stable and is not seriously affected by statutory CGT, adverse gearing and SMSF changes,” he said. “I expect this situation to remain the same over the next few weeks, especially as the school holidays begin.”
