By evening, Domain Group recorded a preliminary clearance rate of 60 per cent after 865 results were reported, while 124 auctions were withdrawn. Withdrawn auctions are counted as not being sold as part of the clearance rate.
In Essendon, a newly built five-bedroom townhouse was snatched up by a young family from three other bidders for $3,000,001.
The townhouse at 69 Nimmo Street had a reserve price of $2.885 million, which was within its guide of $2.7 to $2.9 million.
Bidding for the auction opened at $2.6 million and quickly jumped in $50,000 increments to $2.8 million by two buyers, said Barry Plant Essendon auctioneer Walter Mahch.
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Once the property was declared on the market at its reserve price, two other bidders also joined the auction. At that point, $25,000 and $10,000 bids were made, before a final $1000 bid sealed the result for the young family.
The successful buyers and the underbidder, another young family, were both local to the area.
Mahch said he was surprised that two of the buyers, who participated, had only inspected the property for the first time on auction day.
“In that kind of price range, it is rare,” said Mahch.
Meanwhile, in Melbourne’s north-east, a spacious five-bedroom family home in Templestowe was contested by four buyers.
The house at 9 The Priory was sold for $2.73 million. The house had a price guide of $2.4 to $2.5 million, but Barry Plant Manningham auctioneer Scott George declined to reveal its reserve price.
The auction opened at $2.4 million, but George said that bidding was “all over the place”. Some buyers made $10,000 and $20,000 bids, but one buyer placed “random” bids, he said. For example, a $2,567,250 bid was made.
“All of the buyers were local young families, who were looking for that particular pocket because of the good schools,” said George.
The house had been built by its vendors 32 years ago. George said that the entertainment area led to its auction result.
“It has a swimming pool out the back, it was designed really well and has a well-laid-out floor plan,” he said.
Meanwhile, in Hawthorn, a three-bedroom townhouse in Grace Park estate sold at auction for $2,013,000.
The two-storey townhouse at 10/45-49 Linda Crescent attracted four bidders, including three downsizers. One young couple also participated but a local downsizer was the successful buyer.
Bidding for the auction started at $1.75 million, which was below its price guide of $1.85 million to $2 million.
Once the auction reached $1.9 million, the townhouse was declared on the market. Jellis Craig Hawthorn director Richard Winneke said that the vendors had been pleased with the result, who had lived in the Grace Park area for 20 years.
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The townhouse is in walking distance of Glenferrie Oval, Glenferrie Road and its amenities.
AMP chief economist Dr Shane Oliver said that buyers in the Melbourne property market are struggling to match supply, as demonstrated by the 60% preliminary clearance rate. Anything below 60 per cent broadly points to a fall in prices and a weakening market.
“The bottom line is that homebuyers simply cannot borrow as much as they could months ago,” Oliver said.
Oliver said that Melbourne’s clearance rate is likely to drop further before the Christmas break.
“I suspect we’re heading back into a weakening property market under the impact of the continuing high-interest rates,” he said.
