Massive auction results power Melbourne’s property market

18 The Terrace, South Morang, unexpectedly sold for more than $1m on Saturday.

Melbourne’s recovering property market is delivering six-figure bonuses to homeowners’ pockets with expectations the auction trend will continue.

Multiple houses across the city sold for sums much higher than their listed prices this week due to plenty of bidders turning out, low stock levels and widely-tipped future interest rate cuts.

According to PropTrack, Victoria recorded a preliminary 70 per cent clearance rate from 338 early auction results yesterday, when some lucky vendors even became unexpected millionaires.

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A four-bedroom house featuring a pool at 18 The Terrace, South Morang, sold for $1.032m after being advertised at $790,000-$860,000.

Ray White Mill Park director Kon Kouvas although the reserve price was in the listed range, four bidders “got to a level where it just wouldn’t stop”.

“People can sense interest rates will be dropping and a lot of buyers are saying, ‘Let’s buy now because once interest rates drop, there will be a lot more buyers in the market,” Mr Kouvas said.

“There’s just no stock and a lot of people aren’t wanting to build, so existing homes are going to the next level.”

Also on Saturday, another Ray White listing, a two-bedroom unit at 2/10 Alvie Rd, Mt Waverley, fetched $1.092m after being listed for $830,000-$890,000.

Agent Jacob Biviano said that out of four bidders, a first-home buyer who had been looking for six months won the keys.

18 The Terrace, South Morang, features a decking area, grassed yard and a pool.

The unit at 2/10 Alvie Rd, Mt Waverley, has its own private driveway, a double garage, and a lan outdoor entertainers’ area.

Apollo Auctions Victoria director Andy Reid acted as auctioneer for multiple properties that sold six-figures above expectations yesterday.

This included a Burwood Easthouse advertised at $800,000-$880,000 that changed hands for $1.05m and a St Albans house listed for $560,000-$610,000 that sold for $752,000.

Harmony Real Estate’s Tingli Wu had the first listing and Calder Real Estate Agents’ Mohammed Safatli had the second.

Mr Reid said a reason behind the Reserve Bank not cutting Australia’s official cash rate earlier this month was the real estate market’s gathering momentum.

“Now, can you imagine what it’s going to do when interest rates drop, it will go crazy,” he said.

However, Mr Reid stressed that not all properties would soar way above reserve into the future.

Apollo Auctions Victoria director and auctioneer Andy Reid in action.

Real Institute of Victoria president Sam Hatzistamatis said that boosted confidence in real estate and heightened emotions at auctions could both cause big results.

“I think we might see a few more of these due to that increased confidence which will see more people return to the property market, including owner-occupiers, investors and first-home buyers,” he said.

PropTrack’s quarterly home figures for June showed that almost 380 Melbourne suburbs have recorded an uptick in median house prices since April, after months of flat or little price growth.

About 850 auctions are slated across Victoria next week.

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