Melbourne auctions brave rain and November interest rate freeze – realestate.com.au

Heavy rain and the lack of a rate cut in November failed to dampen Melbourne’s auctions as several homes smashed their six-figure reserves yesterday.

According to PropTrack, Victoria recorded a preliminary approval rate of 71.9 per cent this week based on 748 early auction results, after the Reserve Bank put the Australian cash rate on hold at its meeting on Tuesday.

Frank Valentic, principal of Advantage Property Consulting and buyer advocate, said the lack of a rate reduction “has not changed buyer FOMO at this point.”

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“Most of our buyer advocates are keen to secure a home as quickly as possible before the price rises further next year,” Mr Valentic said.

“From now on, stock levels will dry up as there is really only one to two weeks to start an auction campaign before the market closes for Christmas.”

He described the Melbourne market as currently experiencing “the calm before the storm”.

“Real estate prices have been stable for a number of years and are now poised for strong growth in the coming years,” Valentic said.

The kitchen at 3 Dally St, Northcote, features concrete worktops and European appliances.

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On Saturday, a three-bedroom house at 3 Dally St, Northcote, sold for $2.702 million, more than $400,000 above reserve, said Robert Enes of Nelson Alexander.

It was listed with a price expectation of $2.1 million to $2.3 million and the reserve was set at the upper end of the range.

The Victorian-era house, which was renovated with a modernist-inspired design,

won the 2023 Residential Alterations & Renovations Award from Australian non-profit cooperative ArchiTeam, which supports small, medium and emerging architectural practices.

Mr Enes said he did not expect the house to shatter his reserve, but the new owner, one of three bidders, had fallen in love with the property and was determined to acquire it.

“The owners are delighted, it is a young couple who renovated it,” Mr Enes said.

Advantage Property Consulting director and buyer advocate Frank Valentic.

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In Melbourne’s east, a four-bedroom house at 1 Sherwood Rd, Surrey Hills, changed hands for $2.3 million.

The amount was $320,000 higher than the reserve of $1.98 million, at the high end of the advertised range.

Michael Rosano of Fletchers said that of the two bidders, the 1980s-built property was snapped up by a family buyer.

Mr Rosano said the market is still showing good performance despite no rate cuts in November, although inventory levels have risen from earlier in the year.

1 Sherwood Rd, Surrey Hills, sold six figures above expectations on Saturday.

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In Brunswick West, an Edwardian-era house at 8 Whitby St rose $291,000 above reserve to score a $1.611 million sale.

The three-bedroom condo was listed with a price expectation of $1.2 million to $1.32 million and the reserve was set at $1.32 million.

The listing agent, Matthews Agency CEO John Matthews, said six bidders were vying for the keys.

A man bidding on behalf of his son-in-law won the day, while the owners – who have moved to Europe for work – watched the auction in London via a video on a messaging app.

Six bidders attempted to secure 8 Whitby St, Brunswick West.

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Mr Matthews said the fall in interest rates in August and the federal government’s 5 per cent down payment program for first-home buyers helped stimulate the market.

“Over the last few months we’ve seen a really good improvement in the market, so I think people have just stepped up now and are not sitting on the sidelines,” he said.

Another standout on Saturday was a house at 22 Halwyn Cres, Preston, which sold for $1.57 million under the hammer.

The three-bedroom home was listed with a range of $1.3 million – $1.4 million.

Ian Dempsey of Ray White Preston said five bidders contested the auction.

“The seller had lived in the house since 1958 and is downsizing and moving closer to his family,” Dempsey said.

The owner of 22 Halwyn Cres, Preston, is moving to the address after more than sixty years.

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Marshall White group sales director John Bongiorno said Melbourne’s top market was “quite strong” with “good properties continuing to sell extremely well”.

He said this was the time of year when Australian expats were returning from overseas and hoping to secure a home before Christmas, causing a busier than normal spring.

“It’s just a good transactional market, I can balance between buyer and seller quite easily,” Mr Bongiorno said.

Mr Bongiorno was also preparing to take part in the Stride of Ride charity event on Sunday.

The 60km ride from Portsea to Dromana and back, organized by cycling group Sorrento Bay Riders, raises money for The Portsea Camp, which provides wellness and resilience programs for disadvantaged Victorian children.

Marshall White Group Sales Director John Bongiorno.

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Mr. Bongiorno took part in the event in honor of his late cousin, Tony Bongiorno, who died during the 2023 event after a bicycle accident that left him flown to hospital.

“This ride is very personal. Tony was the one who got me into cycling and guided me in so many aspects of my life,” said Mr Bongiorno.

“To walk this path in his memory is an incredible honor and a fitting way to commemorate a man who gave so much to others.”

Mr Bongiorno said he would encourage other people, including others in the property industry, to support the charity.

Riding alongside him were friends including the now retired founder of commercial property giant Becton, Max Beck, who was deputy chairman of the Royal Children’s Hospital for more than a decade.

Mr Bongiorno said they hoped to raise tens of thousands of dollars for The Portsea Camp.

PropTrack expects 1617 auctions across Victoria next week.

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