Herald Sun - Property
Market steams past pre-COVID levels
Multiple bidders on most properties drive prices higher, writes Alanah Frost
Melbourne home values hit a record high this week, hot on the heels of Victoria hosting its biggest auction blitz on record. CoreLogic found house and unit values had regained all ground lost as a result of COVID-19, and surpassed their previous peak from last April by 0.2 per cent to hit a $736,478 median.
“Following a decline of 6.1 per cent through COVID-19, values have since grown by 6.7 per cent,” CoreLogic research director Tim Lawless said.
Harcourts Judd White director Dexter Prack — who operates in Melbourne’s southeast — said he had “not seen a market this hot in more than a decade”.
“(We’re seeing) fierce bidding and multiple bidders at most auctions,” Mr Prack said. “And open home numbers are through the roof, with some properties averaging 150 to 200-plus at inspections.”
His agency sold 17 Wilton Crescent, Wheelers Hill, for $1.602m — about $300,000 above its reserve — last week as about 2000 homes went under the hammer across the state.
Realestate.com.au recorded a 90 per cent preliminary clearance rate for last week, based on 1391 available results. It expects only 185 properties to go to auction this week, as Easter temporarily slows down the market.
Last Saturday, a bid ending in 99c won the hotly contested auction of a humble Caulfield South villa unit
The 2/11-15 Roselea Street property fetched $1,299,999.99.
“It was down to the cent,” Gary Peer agent Darren Krongold said.
“We’d had a bid of $1.29m and (the auctioneer) said, ‘would you like to round it up (to $1.3m)?’
“She went to 99c, and that was the end of the auction.”
Mr Krongold said the buyer of the three-bedroom property — who had been looking for quite some time — gained a laugh from the crowd with her offer, as well as the keys.
In Dromana, a four-bedroom family home with views of the ocean and city soared about $100,000 above reserve to sell for $1.223m.
Barry Plant Mornington director Danae Eden said the vendor of 6 Kent Street was “absolutely thrilled” with the sale.
“She was so worried (it wouldn’t sell), she was very emotional,” Ms Eden said. “But we had a big crowd and about four actual bidders, and she now has an extra $100,000. It was a great result.”
Meanwhile, investors and downsizers after a “town base” pushed a two-bedroom East Melbourne apartment $150,000 past the top of its quoted range.
The 2/62 Simpson Street pad sold for $920,000 due to “strong competition from several bidders”, Wakelin Property Advisory director Jarrod McCabe said.
And in Hoppers Crossing, a four-bedroom house on a 750sq m block at 51 Doris Drive eclipsed its reserve by $30,000.
The 2000-built property had been advertised for $670,000$700,000 before achieving a $730,000 sale, Reliance agent Pratik Shah said.
Mr Shah said there were seven potential bidders, including firsthome buyers in the crowd.
But only three — all upsizers — had the chance to put their hands up.
The winner was a “lifestyle buyer” from Torquay.