Key points

• A young professional bought a South Yarra home in post-auction negotiations for $1.8 million.
• An Oakleigh South three-bedder fetched $950,000. 
• An investor beat an owner-occupier for an art deco unit in Caulfield North. 

A stylish South Yarra home passed in at auction on Saturday for less than it might have fetched a year ago, then sold afterwards for $1.8 million.

The updated three-bedroom Victorian home at 70 Moore Street attracted a crowd of more than two dozen, but there was only one serious bidder among them.

The auction was one of 268 scheduled in Melbourne on Saturday, a quiet auction day due to the long weekend and the first since the 10th straight interest rate rise last week.

The double-fronted South Yarra home was listed with a price guide of $1.75 million to $1.85 million.

Marshall White Stonnington auctioneer James McCormack opened proceedings by suggesting a floor price of $1.75 million and calling for offers.

A young professional man with his father in tow bid $1.78 million but faced no further competition.

Marshall White auctioneer James McCormack sold 70 Moore Street in post-auction negotiations.Credit:Penny Stephens

McCormack highlighted the sought-after location to the crowd, listed examples of comparable sales to illustrate the value on offer, and informed them the top bid was “probably 10 per cent less than what it would have cost you a year ago”, but eventually passed the property in.

Post-auction negotiations ensued and the parties struck a deal at $1.8 million. McCormack declined to comment on the reserve price.

“The trend of auctions of three and four bidders in the heat of the 2021 market has certainly subsided, but we’re still seeing really good interest at auctions,” he said.

“Whether it’s one bidder or two or three, the beauty of the auction system is if you are the highest bidder you get to come inside [if a property is passed in] and have a discussion with us and we negotiate an outcome.”

More than two dozen watched, but most kept their hands in their pockets.Credit:Penny Stephens

He said there were 51 groups through during the campaign, adding that homes were still selling, as buyer demand was boosted by the scarcity of properties on offer.

Elsewhere, a downsizer snapped up a three-bedroom, red brick veneer home in Oakleigh South for $950,000.

Five bidders made offers for the single-storey townhouse at 1/39 Golf Road, listed with a price guide of $800,000 to $880,000.

Bidding began at $820,000 and rose fast to the $900,000 mark, after which the pace slowed, Ray White Oakleigh selling agent Leigh Kelepouris said. He declined to reveal the reserve.

A mix of investors, downsizers and first home buyers had shown interest in the property, he said.

“It is definitely a tale of two markets. Homes that are renovated, there is nothing to do, are doing exceptionally well,” he said. “Homes that need a little bit of work – unless they are priced competitively and aggressively – they are struggling a little bit.”

Buyers had already factored in a couple more interest rate rises into their plans, but some owners were hesitant to come to market, meaning stock levels were tight, he said.

In Caulfield North, an investor beat an owner-occupier for a three-bedroom art deco apartment, paying $1.02 million.

The ground-floor unit at 1/440 Dandenong Road sold above its price guide of $880,000 to $950,000.

Jellis Craig Carnegie selling agent Michael Minic wished he had about 50 similar “cracking” art deco pads to sell every weekend. He declined to reveal the reserve.

Minic is seeing more qualified buyers inspecting homes, rather than people just looking.

“Interest rates are a factor. However, the smart money is buying,” he said.

North of the river, a Brunswick terrace with a backyard was still available after passing in on a vendor bid of $1.25 million.

The single-level, three-bedroom semi at 52 Edward Street went to auction with a price guide of $1.25 million to $1.35 million. It was afterwards advertised with a price guide of $1.34 million.

Jellis Craig Fitzroy selling agent Johanna Doherty said two potential buyers had already been in touch to express interest.

“There’s still plenty of buyers that are out there,” she said, after hosting another open home on Saturday in Clifton Hill that drew 26 parties.

“Some people are new buyers, so they don’t know exactly what they want or exactly what they can afford.”

In Reservoir, three first home buyers competed for a three-bedroom family home with scope to update.

Bidding opened on a vendor bid of $700,000 for 65 Yarra Avenue, then rose to $745,000 when it passed in.

The house sold in post-auction negotiations for $772,500, Ray White Preston selling agent Ian Dempsey said. He declined to reveal the reserve, but its price guide was $730,000 to $800,000.

First home buyers were probably the biggest buyer pool in the Reservoir and Preston area at the moment because they saw good value, he said, adding many buyers had become used to the string of rate rises.

“Buyers have realised that it is a good market to buy in,” he said. “There is a bit of activity now because they don’t want to miss the downturn, they don’t want to miss the bottom.”

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