A downsizer successfully acquired a two-bedroom villa in Cheltenham for $887,000 during an auction held on Saturday. The property, located at 5 Haughton Street, was listed with a price guide ranging from $780,000 to $830,000, with the reserve set at the upper limit. The auction drew interest after the buyer had previously missed out on several homes.
The bidding commenced slowly but picked up momentum, starting at $750,000, as reported by Ivan Blow, a selling agent with Buxton Real Estate Bentleigh. Two bidders participated actively until the final sale price was reached, although Blow noted that a third potential buyer was present but did not have the chance to place a bid.
Market Conditions and Trends
According to Blow, the property market in the Cheltenham area is experiencing improvement, particularly in the upper end segment. He attributed this trend to low housing supply. “We are seeing particularly the upper end – the upper end is very strong in our area,” he stated. Many homeowners appear to be holding off on selling as the Melbourne market shows signs of recovery after a period of stagnation.
The auction coincided with a significant moment for first-time buyers, as the federal government’s First Home Guarantee scheme is set to expand next week, allowing eligible buyers to purchase homes with only a 5 percent deposit. This has sparked interest among first home buyers eager to take advantage of the new scheme.
On the same day, another auction in Avondale Heights saw a small, two-bedroom house sell for $865,000. The property, located at 84 Thompson Street, attracted four bidders, including three first home buyers and one investor. Listed by Mark Giardina from Nelson Alexander, the home had a quoted price range of $725,000 to $770,000.
Giardina described the auction as highly competitive, with bids starting at $700,000. The appeal of the property, which had been subdivided from a larger block and featured its own title, contributed to the strong interest. “It was a renovated two-bedroom unit, it was independent so it was on its own little block of land with its own title which is unique,” he noted.
Implications for Future Auctions
The presence of buyers willing to engage in competitive bidding reflects a positive shift in the market, particularly for properties that offer distinctive features. Giardina emphasized that the renovation quality and the property’s unique status likely influenced the bidding dynamics.
As the AFL Grand Final weekend typically sees fewer auctions, this event marked a significant moment in the Melbourne real estate landscape. With 95 auctions scheduled across the city, the outcomes may signal a broader trend as the market adjusts to changing economic conditions and policy incentives.
The recent sales in Cheltenham and Avondale Heights demonstrate a growing confidence among buyers, particularly as the government initiatives aim to support first-time purchasers in a competitive market. With continued interest and low supply, the trajectory of the Melbourne property market is set to remain dynamic in the coming months.
