A mature couple secured a free-standing villa unit in Bentleigh for $1,151,500, significantly surpassing the reserve price by $231,500 during an auction on March 30, 2024. The two-bedroom, one-bathroom property located at 2/6 Jeffrey Street was initially guided at $900,000 to $930,000 and attracted a diverse group of bidders, including downsizers and first-time home buyers. This auction was part of a larger event featuring 855 auctions scheduled across Melbourne that day.
According to Simon Pintado, the lead agent at Buxton Real Estate Bentleigh, two daughters participated in the bidding on behalf of their parents, who are in their 60s and looking to downsize. The underbidder was a couple seeking to upsize from an apartment. The competition became intense as bidding commenced at $900,000, quickly exceeding the reserve of $920,000.
The vendor, an orchestra conductor relocating overseas, had purchased the villa unit in 1995 for $141,500 and expressed satisfaction with the auction outcome. Pintado noted a marked increase in market confidence, stating, “Confidence in the market has gone up in the last month, and is probably up 50 percent from what it was a few weeks back.” He highlighted that decreasing interest rates, combined with perceptions of Melbourne being undervalued compared to other major Australian cities, could signal the beginning of a potential growth cycle lasting three to five years.
In a related auction in nearby Hampton, another two-bedroom villa unit sold for $1,071,000 to first-time home buyers represented by an advocate. The property at 1/223 Thomas Street, which includes a study and a privately hedged front garden, attracted two bidders: the first home buyers and an investor. The bidding opened at $950,000 from the investor, as noted by Ewan Bennett, a lead agent at Marshall White.
Bennett remarked on the competitive nature of the bidding, which ultimately concluded with the first home buyer victorious. The property, which had a guide price of $900,000 to $990,000 and a reserve of $980,000, exemplifies the evolving landscape of the housing market. While Bennett has not observed significant changes in the market recently, he indicated that buyers are increasingly recognizing valuable opportunities. “They are certainly prepared to either invest or spend the money needed to buy into the market due to the belief that because rates are going down, there will no longer be the risk of their property devaluing after purchase,” he added.
The outcomes of these auctions reflect a growing trend among buyers who are willing to engage with the market, driven by changing economic conditions and the desire for homeownership. As the Melbourne property market continues to evolve, both agents and buyers are keeping a close watch on future opportunities.
