It was the most-viewed property going to auction in all of Australia last week, and this Melrose Park home did not disappoint when it went under the hammer on the weekend.
The well-presented sandstone-fronted 1950s home was advertised with a $590,000 price guide and ended up selling for $685,000, some $41,000 above its reserve.
The home had proved popular at opens, attracting about 100 groups, which was “significant for the area,” according to sales agent Daniel Richardson of Tanner Real Estate.
He described the auction, which attracted nine registered bidders, four of whom made bids, as “hard fought”.
“The ferocity of the bidding blew the underbidders out of the water straight away,” Mr Richardson said.
“It went well above the asking price and the vendor’s expectations.
“The reserve was $639,000. It sailed past there really quickly and went up in $10,000 (increments).
“The vendor was wrapped- it was great.”
Mr Richardson attributed the home’s popularity to its layout, with four bedrooms, two bathrooms and an open-plan rear extension – a popular combination for families.
It also included a large rear lawn overlooked by a covered alfresco entertainment zone.
A lot of similar properties in the area were not extended, Mr Richardson said.
The sandstone frontage, which extended down the sides of the property also made it a standout on both an aesthetic and a practical level Mr Richardson said.
“We also had an open on that 46.2C day- it had two split systems but anyone who was there will tell you it was completely equipped (for the hot weather),” he said.
Mr Richardson said the property attracted a market of families and interstate buyers from Sydney and Melbourne.
“Some (interstaters) were investors, and some were people moving back to Adelaide from Melbourne- but it was mainly families.”
He said interstate investors were becoming “more obvious” in Adelaide’s market in recent months, as South Australian investors dropped out.
“I rarely get South Australian investors coming to opens now- it’s almost non-existent,” he said.
“All the young couples are back in the market- it’s great,” he said.
He said interstate investors were attracted to the relative stability of Adelaide’s market as the eastern states started to experience downturns.
“We don’t have the wicked highs and enormous lows- generally it’s seen as a fairly stable, insulated real estate market here.”
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Mr Richardson described Melrose Park, which sits about 9km south of the CBD, in the prestigious Mitcham council area as a “sleeping giant” of Adelaide’s property market.
Latest CoreLogic figures show the suburb experienced 13.9 per cent price growth in the year to October 2018 and has a current median price of $609,250.
The wider Mitcham council area has a median of $638,000 and Mr Richardson says auctions in nearby Cumberland Park and Daw Park — which have slightly higher medians at $730,000 and $616,000 respectively — have been very strong in recent months.
Melose Park is also undergoing rejuvenation, he said.
“The council is strict on sub division- you can’t put cookie cutter homes on there and there’s a lot of renovation and updating going on there,” he said.