Advocates push Collingwood warehouse apartment to $1.5m
Seven buyers' advocates, three of whom bid, were at the auction of 24/125 Oxford Street, a three-bedroom apartment on the top floor of the Gibson & Foy building.
Despite their presence, the winning bidder represented himself and paid more than $200,000 more than its $1.3 million reserve.
The competition for the property signalled a definitive shift in perceptions of the once working-class suburb of Collingwood, which has almost defied gentrification in the past 20 years even while neighbouring suburbs have been transformed.
Jellis Craig agent Simon Shrimpton said it was a record price for an Oxford Street apartment. "At the start we thought it would sell in the low $1 millions but we received a much much greater response than we expected and we removed the price after the first week."
Collingwood's gritty edge has started to attract some polish, partly from restaurants on Smith Street, new businesses and cafes and its proximity to the city. "I sold a house at 19 Campbell Street for $850,000 last week and no house on Campbell Street has ever sold for more than $700,000," he said.
Collingwood was still edgy, but attracted a demographic that included gay and straight couples and down-sizing empty nesters.
"There aren't too many families, unless a double-fronted house comes on the market," he said.
The advocates present included David Morrell, Monique Wakelin and Frank Valentic, who represented the losing bidder. Most said they had never before seen so many advocates at a single auction.
Mr Morrell said "it was a unique property and they always attract a premium. But a single sale does not make a market."
More than $1.5 million for a warehouse apartment in Collingwood was too much, he said. "If I had paid that much I'd have woken up in a foetal position."
Mr Valentic said the presence of so many advocates suggested a shift in the market. "It's a sign the market's changed. People have been missing out at auctions so they get in professionals," he said.
The Real Estate Institute of Victoria recorded a clearance rate of 67 per cent from 176 reported auctions over the weekend, compared with 68 per cent last weekend and 58 per cent on the long weekend last year.
The REIV expects about 870 auctions next weekend with a further 1210 on the following weekend.
Easter falls early this year, with school holidays starting on March 28. The compressed time period, the bullish stock market and low interest rates have combined to create healthier results than have been seen for a couple of years.
Leafy eastern suburbs agency Marshall White sold 60 properties worth more than $92 million last week, both at auction and privately.
Marshall White director John Bongiorno said "the volume of real estate that is selling on and off the market is right up there with some of the best times we've had".
"People have come to the realisation that the economy is in good shape and the stock market has had a good 12 months."
Frequently Asked Questions about this Article…
The top‑floor three‑bedroom warehouse apartment at 24/125 Oxford Street sold at auction for about $1.512 million (roughly $1,512,000). The winning bidder represented himself and paid more than $200,000 above the property's $1.3 million reserve.
Seven buyers' advocates attended the auction and three of them actively bid. Their presence increased competition and helped push the price higher, although the eventual winner was self‑represented. Some advocates said the heavy attendance of professionals is a sign the market is changing.
Yes. Jellis Craig agent Simon Shrimpton said the price was a record for an Oxford Street apartment. He noted initial expectations were for a low‑million sale, but strong interest led the agent to remove the advertised price early in the campaign.
The article says Collingwood's 'gritty edge' has begun to attract polish — restaurants on Smith Street, new businesses and cafes, and proximity to the city — and that this shifting perception is contributing to higher prices. An example cited was a house on Campbell Street selling for $850,000 when $700,000 had previously been the local high.
Opinions varied: David Morrell said the property was unique and typically attracts a premium but warned a single sale doesn't define a market; he personally felt more than $1.5 million was excessive. Frank Valentic suggested the presence of many advocates indicates a market change, with people bringing in professionals so they don't miss out at auction.
The Real Estate Institute of Victoria (REIV) recorded a 67% clearance rate from 176 reported auctions that weekend. That compares with a 68% clearance rate the previous weekend and 58% over the same long weekend last year.
The article attributes healthier auction results to a compressed selling timeframe because Easter falls early, a bullish stock market, and low interest rates — a combination that has produced better outcomes than seen in the previous couple of years.
Leafy eastern suburbs agency Marshall White sold 60 properties worth more than $92 million in one week. Marshall White director John Bongiorno said transaction volumes on‑ and off‑market are up with some of the best periods they've seen, and that people are responding to a stronger economy and a good 12 months for the stock market.
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