Art deco flat starts fast bidding war
The large two-bedroom ground-floor flat at 7/56 Darling Street is at the back of the Bona Vista apartments designed by architect Stuart Hall and built around 1940.
It fetched $1.18 million after bidding from seven parties pushed it well beyond its modest reserve of $720,000. Auctioneer Philippe Batters said it was difficult to value because there were few comparable sales in that part of South Yarra and the railway line was an unknown factor.
"We had huge turn-ups during the open for inspection and large groups of architecture students. We knew we had large volumes of interest but we didn't know if we had the buyers," Mr Batters said.
"We set the reserve at $720,000. The first bidder called out $710,000 and then we had $720,000 and I couldn't get the words out of my mouth to say it was on the market until $800,000."
The 163-square-metre flat was owned under "stratum title": the buyer would own a title to the property but hold the tandem garage under a rolling lease.
That put off buyer advocate Frank Valentic, who walked away from the auction shaking his head at the price paid. "That was the biggest amount over reserve we've seen all year," he said.
Mr Batters said the property was bought by business people who were architecture buffs.
Frequently Asked Questions about this Article…
The bidding war for the Art Deco flat in South Yarra was sparked by its unique architectural design by Stuart Hall, its location, and the rarity of comparable sales in the area, which attracted significant interest from architecture enthusiasts and potential buyers.
The bidding war for the Art Deco flat in South Yarra was sparked by its unique architectural design by Stuart Hall, its location, and the rarity of comparable sales in the area, which attracted significant interest from architecture enthusiasts and potential buyers.
The Art Deco flat sold for $1.18 million, which was nearly 64% over its reserve price of $720,000, highlighting the intense competition and interest in the property.
The Art Deco flat sold for $1.18 million, which was nearly 64% over its reserve price of $720,000, highlighting the intense competition and interest in the property.
Valuing the Art Deco flat was challenging due to the lack of comparable sales in that part of South Yarra and the potential impact of the nearby railway line, making it a unique property in the market.
Valuing the Art Deco flat was challenging due to the lack of comparable sales in that part of South Yarra and the potential impact of the nearby railway line, which added uncertainty to its market value.
A stratum title means the buyer owns a title to the property but holds the tandem garage under a rolling lease. This arrangement can be less appealing to some buyers, as it was for buyer advocate Frank Valentic, who was put off by this aspect.
A stratum title means the buyer owns the title to the property but holds the tandem garage under a rolling lease. This arrangement can deter some buyers, as it did with buyer advocate Frank Valentic, who was put off by this aspect.
The Art Deco flat was purchased by business people who were architecture buffs, indicating their appreciation for the property's unique design and historical significance.
The Art Deco flat was purchased by business people who were architecture buffs, indicating their appreciation for the property's unique design and historical significance.
Buyer advocate Frank Valentic was surprised by the high sale price, noting it was the biggest amount over reserve he had seen all year, which led him to walk away from the auction.
Buyer advocate Frank Valentic was surprised by the high sale price, noting it was the biggest amount over reserve he had seen all year, which led him to walk away from the auction.
Auctioneer Philippe Batters described the interest in the Art Deco flat as significant, with large turnouts during open inspections and many architecture students showing interest, although it was uncertain if there were enough buyers.
Auctioneer Philippe Batters described the interest in the Art Deco flat as significant, with large turnouts during open inspections and a high level of interest from architecture students and potential buyers.
The property's architectural design, crafted by Stuart Hall around 1940, played a crucial role in attracting interest from architecture enthusiasts and contributed to the competitive bidding that drove the sale price significantly above the reserve.
The property's architectural design, crafted by Stuart Hall around 1940, played a crucial role in attracting architecture enthusiasts and driving up the bidding, ultimately leading to a sale well above the reserve price.
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