Two first home buyer parties battled it out for a well-presented South Melbourne apartment at auction on Saturday, pushing the price to $612,000.
The two-bedroom home at 71/88 Park Street had a price guide of $560,000 to $610,000. It spans 95 square metres of living space in a complex with a swimming pool and gym.
It was one of 909 auctions scheduled in Melbourne on Saturday, the first weekend after the federal budget unveiled changes to tax concessions on investment properties and supply measures in a bid to boost home ownership.
Bidding began with a vendor bid of $575,000, and two parties competed, sending the price above the $600,000 reserve.
A set of first home buyer sisters won, beating a first home buyer young professional couple.
“It was competitive,” Woodards Elsternwick selling agent Sean Rice said. “The market is not too bad … obviously people are holding their breath after the budget being delivered. People are still asking questions about negative gearing.”
He described the market as balanced, saying vendors wanted to sell and buyers wanted to buy.
“I personally find the market still pretty good in respect that the first home buyers are out looking for property.”
Elsewhere, an art deco apartment with a stylish renovation in South Yarra is still available after passing in at auction.
The two-bedroom home at 9/56 Darling Street was listed with a price guide of $800,000 to $880,000.
Marshall White selling agent Jack Martin said there was interest in the crowd but there wasn’t a bid, and after a vendor bid of $800,000, the home passed in.
First home buyers and young professionals had been interested during the campaign, as well as a couple of investors and a couple of people looking for a Melbourne base.
He said the reserve was $865,000 and he would hold another open for inspection on Saturday afternoon.
“People thought the price might have been a bit higher than the advertised range, but our vendors are pretty realistic,” he said.
“There is a lot of noise at the moment with the market. Good properties are still selling; they are just taking a little more time to do so.”
He has been fielding questions about the budget this week. He thought fewer investors would now decide to sell, limiting choice for buyers later in the year.
“For first home buyers, there has still never been a better time to get into the market.”
Elizabeth Redman is the national property editor at The Age and The Sydney Morning Herald.Connect via X or email.
