Renovators' delights rule at bidding wars Sunday sales
Despite holes in the roof and peeling paint, Rupertsleigh, at 43 Willis Street, attracted four bidders, keen to redevelop its large 1365-square-metre lot.
The auction started with a genuine bid of $1.8 million, and passed its $2.5 million reserve before selling under the hammer.
RT Edgar agent Rowan Thompson, who conducted the auction, said none of the parties keen to restore the property put in a bid and it would probably be redeveloped.
"There were plenty there but they did not raise their hands," he said.
The bidders ranged from people looking to build a new house and pool to others who planned to build units.
The bayside market "seems to be stronger", Mr Thompson said. "That property and other properties are getting good interest and good numbers through the open-for-inspections."
The auction clearance rate slipped again slightly over the weekend, down to 66 per cent (from 68 per cent last week), from 575 auction results reported to the Real Estate Institute of Victoria. Of the 194 properties that were passed in, 123 did so on a vendor's bid. A further 29 results are yet to be reported.
The clearance rate for the year so far is 69 per cent, which is higher than the past two years. The number of properties going to auction has improved, with listings running about 12 per cent higher than the 10-year average up to mid-May.
Next week, the REIV is expecting about 780 auctions, despite Anzac Day falling on a Thursday and potentially constituting a long weekend for some people.
The inner-northern suburb of Preston recorded a rare $1 million-plus sale on Saturday with the auction of 61 David Street.
The renovated hall, a former Salvation Army barracks, sold for $1.0625 million through Hocking Stuart. According to REIV data the last time Preston had a $1 million sale was in 2011 when 1 Bailey Avenue fetched $1.12 million.
Preston's median house price for the March quarter is $637,500, up 8.1 per cent for the year and 4.5 per cent for the quarter.
The five-bedroom house is just off Plenty Road behind a bulky goods and semi-industrial strip, but it is on a 450-square-metre triangular block.
In North Melbourne, the home of the late Victorian governor Davis McCaughey and his wife Dr Jean McCaughey sold for $1.901 million, after a long 30-minute auction in front of 100 people.
Built in 1869, the house at 36 Chapman Street needs substantial work but is on a large and rare (for North Melbourne) 652-square-metre block of land, and has off-street parking.
The auction kicked off with a $1.6 million offer from a man who brought along his own stool.
He and another bidder pushed the price to $1.85 million, when it was declared on the market. At that point, a third party emerged, but the property was finally bought by the seated bidder.
Nelson Alexander director Arch Staver, who conducted the auction, said the market had been consistent this year.
"I called four auctions on Saturday and they all sold under the hammer, all had a minimum of three bidders and I only had to make one vendor bid - that's a good sign," Mr Staver said.
His most surprising result was for an unrenovated three-bedroom terrace at 137 Amess Street in North Carlton, which sold for $1.125 million, off a reserve of $950,000.
"There were four bidders, two we knew and two who surprised us - and that's another sign of the market. People you don't expect to bid are putting up their hands," he said.
Buyer's advocate Michael Ramsay said the market was picking up.
"If we have five gears, we're about to go into third gear," he said.
Frequently Asked Questions about this Article…
The Hampton property, Rupertsleigh at 43 Willis Street, attracted strong interest despite its poor condition because it sits on a large 1,365‑square‑metre lot with clear redevelopment potential. The auction opened with a genuine bid of $1.8 million, passed its $2.5 million reserve and ultimately sold under the hammer for $2.55 million — buyers were more interested in rebuilding or subdividing than restoring the cottage.
Agents reported multiple competitive auctions with a minimum of three bidders in many cases, surprise bidders turning up and properties selling under the hammer. For example, several auctions had four bidders vying for sites for new houses, pools or unit developments — a sign dealers described as the market picking up and showing consistent buyer demand.
The weekend auction clearance rate slipped slightly to 66% from 68% the previous week, based on 575 auction results reported to the Real Estate Institute of Victoria (REIV). Of 194 properties passed in, 123 were passed in on a vendor's bid, and a further 29 results were yet to be reported. The year‑to‑date clearance rate is about 69%, which the REIV says is higher than the past two years.
Yes — listings have improved, running about 12% higher than the 10‑year average up to mid‑May. The REIV was expecting roughly 780 auctions the following week despite Anzac Day taking place midweek. For investors, more supply and steady auction activity can create more opportunities to buy, but it also means watching clearance rates and competitive bidding closely.
Yes. A renovated hall at 61 David Street in Preston sold for $1.0625 million — the first $1 million‑plus sale in Preston since 2011 — and a substantial historic home at 36 Chapman Street in North Melbourne sold for $1.901 million. These transactions highlight pockets of strength even in inner‑suburban markets.
The weekend saw a mix: some bidders aimed to build a new house and pool, others planned unit developments, and there were also buyers interested in renovating or holding large blocks. Agents noted that many parties keen to restore properties didn’t bid on certain sites, suggesting redevelopment was often the primary motive.
Yes — unrenovated properties can still attract strong offers. For example, an unrenovated three‑bed terrace at 137 Amess Street in North Carlton sold for $1.125 million off a $950,000 reserve, with four bidders including some unexpected participants. That result was cited as a clear sign of buyer interest in value and renovation potential.
Key takeaways: pockets of the Melbourne market remain competitive, particularly where large blocks or redevelopment potential exist; weekend clearance rates dipped slightly but the year‑to‑date rate is higher than the last two years; listings are up about 12% versus the 10‑year average, creating more buying opportunities; and unexpected bidders are turning up at auctions — meaning investors should be prepared for competitive bidding and weigh redevelopment potential when evaluating properties.
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