The two Brighton East properties sold separately at auction on Saturday.?? Click here for Saturday’s auction results.Click here for the Market Snapshot.
Two country Victorian investors are rubbing their hands together after their small cottage in Melbourne’s inner north sold more than $200,000 above reserve.
But the hot auction has been described as “almost frightening” for those still looking to get into the property market.
It was one of 762 auctions across Melbourne. By Saturday evening, Domain Group reported a clearance rate of 73 per cent from 560 reported auctions.
Sixteen years ago Trevor Bonney and his business partner bought the two-bedroom house in Fitzroy North as an investment.
“We got some good advice,” Mr Bonney said just minutes after the property sold under the hammer for $1,175,000.
“We sort of got the crystal ball out, and we got the advice to buy within four kilometres of the city.”
Title records show they paid $299,000.
Mr Bonney, who drove from his hometown of Warrnambool for the auction, described the area as eclectic.
“It’s a cool place because of the pub culture and its proximity to the city,” he said.
Four people competed for the house on Saturday. In a flurry of strong bidding, the $950,000 reserve was quickly surpassed. Related: Melbourne median house price soarsRelated: New suburbs join million-dollar clubRelated: Toorak residents buying next door
Auctioneer Rob Elsom from Jellis Craig Fitzroy said demand for property in the north was getting stronger.
“It’s almost frightening for people looking to get into the housing market because it is a pretty simple two-bedroom, single-fronted Victorian home,” he said.
“But if that’s entry level now – just under the $1.2 million mark – it’s a bit scary.”
The successful buyer, a woman nursing a toddler as she bid for the property, plans to move into the house, Mr Elsom said.
While carpenter Andrew Armstrong hoped to buy and renovate the house as an investment, the bidding quickly exceeded his budget.
“I’ve been to a few auctions in the last year or so around here and I think it’s a matter of being in the right place at the right time,” the 33-year-old Collingwood resident said.”I’ve seen some places go for very reasonable amounts and then if you’re at the wrong auction when everyone’s there sometimes the price can be crazy.”
Meanwhile in Albert Park, a crowd of more than 100 watched a renovated old dairy sell for $5 million under the hammer.
Two bidders competed for the keys to the former Morris Bros Union Dairy on Herbert Street, with bidding opening at $4.5 million before quickly exceeding its $4.6 million reserve.
It was a family that eventually came out on top, paying $400,000 above reserve.
The vendor bought the property for $626,400 in 1999 and went on to completely remodel and refurbish it.
Listing agent David Wood from Hocking Stuart Albert Park said it was an emotional day for the owner. “It was with a heavy heart that he bought it to the marketplace,” Mr Wood said.
In Brighton East, two homebuyers fought off developers for two side by side properties that went to auction.
To the dismay of interested developers, the home at 1 Roosevelt Court sold to an owner occupier for $1.8 million. The underbidder from that auction then bought number 3 for $1.7 million.
Listing agent John Clarkson from Buxton Brighton said it was a great result for the vendor, who owned both properties.
In Toorak, a 650-square-metre block of land on Balmerino Avenue with a price guide of $4.3 million to $4.7 million also went under the hammer.
The block passed in at auction, but listing agent Justin Long from Marshall White Stonnington said a deal had been struck by Saturday afternoon.