Melbourne lockdown: online auctions smash reserves by up to $700,000
236 Ballan Rd, Wyndham Vale, sold more than $86,000 above its reserve in a “crazy” result the agent has branded “click and collect”.
Melbourne’s normally pumping spring selling season has had its second straight soft start.
With fewer than 200 homes scheduled to go under the hammer last weekend, and the number not expected to top 300 this week, listings are well below historic norms.
But big results continue, with a Sorrento beach shack selling $700,000 above its reserve in a $2.5m online auction on September 3.
Jellis Craig’s Emil Foller said with 40 bidders registered and 10 making offers, “lockdown probably pushed it a little bit beyond what we would have expected”.
The home’s sale had been twice stymied by lockdowns before, but “the momentum just kept building” so an auction was called four weeks after restrictions began.
A Melbourne man won the keys to the 11 St Pauls Rd home and plans to build a ritzy replacement.
At the more affordable end of the market, a Wyndham Vale house shot $86,500 past its reserve as a pair of first-home buyers running out of time on home loan pre-approvals refused to let go.
Hocking Stuart Werribee director Eric Bartz said the $556,500 sale of 236 Ballan Rd showed while limited, sales could continue with a surprising number of buyers willing bid online without inspecting a property.
“It’s click and collect for homes,” Mr Bartz said. “It’s crazy.”
Seven of the 12 buyers registered to bid made offers at the September 4 auction as investors competed with first-home buyers.
Buxton Box Hill director Jim Chen said his firm ended the weekend with three of its three auctions selling $100,000 or more above reserve.
“And all sold to buyers who haven’t seen the home,” Mr Chen said.
A four-bedroom townhouse at 1/9 Peter St, Box Hill North, sold for $1.25m – well above its $1.15m reserve.
“We nearly sold at $1.21m, but the buyer put in a very strong bid, a $40,000 knockout bid,” he said.
“The market is doing alright, … buyers just don’t have any options so it’s actually a good time to sell,” Mr Chen said.
CoreLogic had expected 531 homes to go under the hammer for the first week of spring, with a 44 per cent clearance rate from 371 reported by Monday. Many were postponed or withdrawn.
Originally published as: Melbourne lockdown: online auctions smash reserves by up to $700,000