27th July 2020: Middle Park Home Sells for $2.25 Million in Tough Auction Weekend in Melbourne

Middle Park home sells for $2.25 million in tough auction weekend in Melbourne

Brought to you by Domain - Melissa Heagney

Melbourne home-owners are holding back from the market, with some skipping online auctions and choosing to bide their time until stage three restrictions are lifted, agents say.

There was a sharp rise week-on-week in the number of properties withdrawn from auction at the weekend, as vendors either switched to private treaty sales campaigns or delayed their scheduled auctions.

Of 527 Melbourne properties scheduled to go to auction on Saturday, 203 were withdrawn. By day's end, the city had recorded a preliminary auction clearance rate of 45.4 per cent from 229 results reported.

Of those that were conducted online, there was a 70 per cent success rate, according to Domain figures reported on Saturday night.

Marshall White Stonnington director and auctioneer John Bongiorno said some vendors were delaying their sales until public auctions could be held again in Melbourne.

"Buyer activity is so strong at the moment," Mr Bongiorno said. "We just wish we had more stock."

Those who pushed ahead with online auctions still achieved some big prices – including the sale of a two-bedroom Victorian home in Middle Park that sold under the virtual hammer for $2.25 million.

A professional couple — one of two registered bidders — snapped up the property at 31 Harold Street on Saturday.

31 Harold Street, Middle Park, sold online for $2.25 million. Photo: Marshall White

AMP Capital chief economist Shane Oliver said Melbourne's market was being heavily affected by the stage three lockdown with listing numbers well down on previous months.

A lack of immigration into Australia, has seen the demand for properties in both Sydney and Melbourne fall dramatically, he said.

Melbourne's house prices have likewise dropped sharply, falling 3.5 per cent in the June quarter, Domain figures show. Sydney's median house price fell by 2 per cent.

"Melbourne's pretty bad," Dr Oliver said. "It's been hit the hardest because of the lockdown. That's why Melbourne house prices are falling faster than Sydney's."

While immigration has been stopped in the wake of the coronavirus pandemic, Australian expats are still looking to return to Melbourne.

An Australian buyer living in New York snapped up a three-bedroom townhouse at 2/3 Raynes Street, Balwyn, which sold for $1,366,000 — $66,000 above the $1.3 million reserve.

2/3 Raynes Street Balwyn VIC 3103

Fletchers Canterbury director and auctioneer Tim Heavyside said four bidders fought it out for the keys to the deceased estate. The buyers were a young couple looking to get into the Balwyn market.

"The vendors are two brothers and they were thrilled with the result," Mr Heavyside said.

Not too far away a three-bedroom home at 304 High Street, Ashburton, which had been owned by a hoarder, sold for $1.21 million on Saturday.

304 High Street Ashburton VIC 3147

Buxton Ashburton's Tai Menahem said the house, which was sold as a deceased estate, was unliveable and would need to be knocked down.

The Zoom auction for the home drew 12 registered bidders, four of whom competed for the keys – with a developer making the winning bid.

The buyer would look to see whether they were able to build more than one home on the 733-square-metre block, Mr Menahem said.

"It was an excellent result for the land value," he said.

299 Albion Street Brunswick VIC 3056

In inner-city Brunswick, first-home buyers competed for a four-bedroom house at 299 Albion Street.

Woodards' Jason Sharpe said seven registered bidders turned out for the auctions, most of whom were first-home buyers.

The property sold to a young couple for $1,115,000. Records show it last sold in 2007 for $617,000.

"They were just trying to get into the single-level, double-fronted market," Mr Sharpe said.

First-home buyers also snapped up a property in Kew East, whose vendors have made a local celebrity of their much-loved labradoodle Bailey.

The cute pooch appeared in the property photos online to help sell the home.

The two-bedroom apartment at 202/18 Cadow Street sold under the virtual hammer for $710,000 at the top end of the asking price range.

Nelson Alexander Kew's Petria Thomas said local buyers were approaching Bailey and his owners after recognising him from the photos.

Bailey is now a local celebrity from the ads for 202/18 Cadow Street, Kew East. Photo: Nelson Alexander Kew

Nelson Alexander also sold a three-bedroom renovated Victorian Terrace at 88 Sackville Street, Collingwood, online for $1,215,000 – $115,000 above the reserve.

The buyer was a young woman who bought the property as an investment.

88 Sackville Street Collingwood VIC 3066