Key points

• A garage in St Kilda sold for $391,000.
• The listing agent said he’d received inquiry from overseas. 
• The sale price was $291,000 more than reserve. 

A St Kilda garage, that could have been converted into an apartment, sold under the hammer on Saturday for $391,000, but the buyer is planning to make it a home for his cars rather than himself.

The unique 55-square property, at 10/98 Grey Street, had a price guide of $91,000 to $100,000 and sold for $291,000 above the reserve after five buyers competed.

The garage was still filled with the vendor’s belongings. Credit:Chris Hopkins

Bidding for the garage, which is attached to an art deco apartment building thought to be constructed sometime in the 1930s, opened at $100,000, right on the reserve.

The bidders, who wanted to either convert the property to a one-bedroom apartment or use it as an actual garage, made offers of $20,000 and $30,000 until the price reached $290,000.

Bids of $5000 and $1000 followed. But the eventual buyer, a car enthusiast, kept the pressure on by making a series of $30,000 bids.

His final knock-out bid, also $30,000, won him the off-street parking space and sent a ripple of murmurs through the dozens-strong crowd, who were crammed into the unit block’s tiny courtyard to watch the action.

Buyers watch the action. Credit:Chris Hopkins

The St Kilda auction was one of 971 scheduled across Melbourne on Saturday, the busiest auction weekend for 2023, so far.

Jellis Craig listing agent Andrew Turner said the property had attracted a lot of attention, including from overseas. He had sent out hundreds of contracts to interested buyers, but even so, the result surprised him.

“We thought with all the interest, it would have gone above [the price guide], but how far above we actually didn’t know,” he said. “It went well above our expectations.”

Earlier in South Melbourne, a three-bedroom home sold to a family after a short and sharp auction for $2.2 million.

Marty Fox auctioning 22 Henderson Street, South Melbourne. Credit:Chris Hopkins

The house at 22 Henderson Street sat on a 191-square-metre, double-fronted block with a side laneway access.

Selling agent, Whitefox’s Peter Zervas listed the property with a price guide of $1.75 million to $1.85 million.

Bidding started at the bottom of the range and quickly shot up to $2 million after four bidders competed, making $50,000 offers. The home sold for $330,000 above the reserve.

Zervas said the relatively few properties listed for sale created an environment which was driving up prices at auction, as frustrated buyers fought over what was available.

“It was one that we knew was going to have strong bidding and that’s what happened,” he said. “With quality real estate, it doesn’t matter what the market’s doing if it’s got the right bones.”

Buyers were attracted to the home because of its north-facing backyard and its relatively large block size, Zervas said.

In Brunswick, a three-bedroom, top-floor apartment sold after another fast-paced auction for $1,055,000 — $25,000 above the reserve.

Unit 401/10 Dods Street was surrounded by private balconies and featured modern and spacious living areas.

Nelson Alexander listing agent and auctioneer Mark Verrocchi said two bidders competed to buy the home, a downsizer and first homebuyer.

Bidding opened at $970,000, the bottom of the quoted price range, with two bidders competing to take the price to $1.03 million, just below the top of the range of $1.04 million.

The home sold to the downsizers looking for a more manageable home.

Verrocchi said the vendors’ styling had made the home easier to sell, and that well-presented homes stood out in the undersupplied market.

“It’s grouse, everything just fit the space,” he said. “There’s a lack of quality stock. I really do think there’s a drastic shortage of property.”

Sellers prepared to take buyers’ reduced borrowing capacities into consideration, especially when pricing their homes, would have the most success in the auction market, Verrocchi said.

“If you’re really realistic you’re often pleasantly surprised because then you’ve got the whole marketplace chasing you,” he said. “I think buyers are frustrated that there aren’t many properties to look at on a weekend.

“When they do find one they’re homing in.”

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