Several Melbourne houses have sold for more than $100,000 above reserve at auction this week despite six consecutive interest rate rises since May.
Proptrack recorded a 64.5 per cent preliminary clearance rate from 322 early figures available, with about 725 auctions held in Victoria this week.
About 1273 auctions are expected across the state next week.
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Real Estate Institute of Victoria president Andrew Meehan said there appeared to be rising numbers of buyers attending auctions, even after the Reserve Bank Australia increased the cash rate by 25 basis points to 2.6 per cent earlier this month.
“If a home is in great condition, people are prepared to pay good money for it,” Mr Meehan said.
“But if a home need some work, at the other end of the spectrum people are bit hesitant because of the building industry, it’s hard to get tradespeople and they’re not sure how much repairs will cost.”
On Saturday, Sold By Auctions director Andy Reid auctioned a five-bedroom house at 106 Lawrence Rd, Mt Waverley, which fetched $3.41m, a sum $110,000 above its $3.3m reserve.
“To see five bidders at this high of a price point in Mt Waverley proves that there is still a lack of good supply to satisfy buyers,” Mr Reid said.
LLC Real Estate Mt Waverley director Eric Li had the listing.
A four-bedroom house at 42 Jacks Ave, Dingley Village, sold for $885,000, a figure $105,000 above the $780,000 reserve.
Barry Plant Dingley Village branch manager Dora Kambouris said the mid-century modernist home needed “lots of work” but the buyer was excited to refurbish it.
Among the three other bidders were parents looking to buy for their grown-up child and grandchildren, who cannot find a rental home, and an investor.
“It’s good to see buyers not just looking for shining new homes and being able to recognise potential, it has been awhile since we have seen that amount of excitement for a property that needs refurbishing,” Ms Kambouris said.
In Doncaster East, a three-bedroom house at 4 Regal Ave sold for $1.55m, a sum $120,000 above reserve.
Ray White Manningham agent Harry Lai said the vendors had obtained a permit to build two double-storey townhouses at the site.
“The property was targeted at investors who want to use the included permit and plans … or to rebuild a family home,” Mr Lai said.
“The house is positioned in really good school zones which is on everyone’s wish list.
“We mainly had investors coming through while 20 per cent were looking at it from a family perspective to either renovate and live or rebuild a family home.”
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Source by www.realestate.com.au