Young buyers out in force as auctions increase

Young buyers out in force as auctions increase

A one-bedroom apartment sold more than $50,000 beyond its reserve as auction action returned to the inner suburbs on the first weekend of February.

Savvy young buyers were out to take advantage of the market as an impressive result for a compact St Kilda pad proved Melbourne’s inner suburbs were still in demand.

The Art Deco apartment at 2/33 Eildon Rd pushed $55,000 past its reserve, selling for $495,000 under the hammer.

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Three first-home buyers fought for the affordable property, but an investor eventually won the keys after 40 bids, McGrath St Kilda director Michael Townsend said.

“It was a really competitive auction, with two bidders going head-to-head before the investor came out on top,” Mr Townsend said.

“Their daughter is going to move in and live at the property, so she can stop renting.”

Young buyers had better luck in Collingwood and Fitzroy, where vendors found early offers too good to refuse.

The auctions were to be the first of the year for both suburbs, but 11th-hour offers sealed the apartment sales before bids were called.

A young couple bought 1/205 Johnston St, Fitzroy for $660,000, which was $10,000 above the price guide’s top end.

The apartment at 304/80 Stanley St, Collingwood sold within its $430,000-$470,000 price guide for an undisclosed figure to a first-home buyer.

Jellis Craig Fitzroy agent Luke Dinakis said the one-bedroom pad sold ahead of schedule because the vendor had reasonable expectations.

“It’s not uncommon to see properties sell early in this current market,” Mr Dinakis said.

“Vendors have to make the right call in this climate and look at how their campaign is travelling.”

CoreLogic shows Melbourne’s 44.1 per cent preliminary clearance rate from 102 reported results.

Ray White Blackburn agent Allan Smith said first-home buyers were expected to help buoy the market in 2019.

A young couple bought 153 Mt Pleasant Rd, Forest Hill under the hammer at the reserve price of $900,000, he added.

“There were three bidders including first-home buyers on the 1970s house, which was on a nice big block and would make the perfect family home,” Mr Smith said.

The volume of scheduled auctions is expected to double in the coming week, with 322 properties set to go under the hammer across Melbourne.

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