The house last traded for $1.19 million in 2013, records show.
The property was one of 1421 scheduled auctions in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 62.8 per cent from 1066 reported results, while 160 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Kensington, a three-bedroom Victorian home at 16 Pridham Street with a front yard, back courtyard and plenty of scope for improvement sold for $1,055,000 to a couple who had been looking all year.
Three buyers actively competed for the terrace with period features and a guided range of $950,000 to $1,020,000.
Bidding opened just below its guide at $900,000, then $10,000 bids took the price to $1,040,000. Smaller bids of $2000 and $1000 increased the pace until the home sold for $55,000 above its $1 million reserve.
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Selling agent Zach Sianos from Jellis Craig Kensington said, “It did need a lot of love, but it was on a good block of land. It was 267 square metres, which is quite decent for that pocket of Kensington.
“Good right-of-way access as well,” he said, adding that access is important for renovations of a Victorian terrace.
“There’s a lot of buyers that are sort of reaching the end of their tether after looking all year,” he said.
The winning bidders are upsizing from an apartment in North Melbourne. The vendor is an investor who was “sick of land tax”.
The terrace last traded for $40,000 in 1982, records show.
In Brunswick, two buyers competed for a two-bedroom, Art Deco unit in a boutique block of four. The first-floor apartment at 16/695-697 Park Street sold for $860,000, which achieved $10,000 more than its $850,000 reserve.
A vendor bid of $800,000 kicked off the auction before a small group of onlookers, then three bids of $20,000 each were placed until it sold under the hammer for $860,000.
Selling agent Mitchell Boys from Jellis Craig Brunswick said, “It’s a cracker spot because you’re right opposite Princes Park.
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“It’s an old-style unit, and it has off-street parking, but it has good-sized rooms… two bathrooms.
“It was a little bit more stylish than your average apartment. It had a period charm, solid brick.”
The buyer was represented by a friend, as she is working and living in Tasmania. The vendor was an investor couple from the northern suburbs.
The flat last traded for $356,000 in 2002, records show.
AMP’s chief economist Dr Shane Oliver said Domain’s clearance rate of 62.8 per cent for Melbourne is “a significant fall.”
“Melbourne never got quite as hot as Sydney did. It was strong, okay. But it wasn’t hot, it wasn’t bubbling, but it wasn’t as strong as Sydney, and therefore it hasn’t fallen back as much. It didn’t go up as much, and therefore hasn’t come back as much.”
“I reckon… when the first ones [auctions] in early February, when the clearances start flowing, you’ll probably see a bit of a bounce back.
“But I’d be very surprised if we get back to where we were back in August, unless there’s renewed optimism about interest rates.”
