Melbourne auctions: First-home buyer's year-long search ends with top dollar Preston sale

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An opening bid of $640,000 – $10,000 more than the top end of the advertised price – left the crowd a little shocked at the auction of a two bedroom unit in Preston on Saturday morning.

“I had anticipated people would gradually let it creep up through the guide range, so I guess like everyone I was a bit thrown off,” first-home buyer Eloise Young said.

She and two other hopeful buyers battled it out in fast-paced bids until Ms Young came out the winner for the Gilbert Road unit, paying $702,000.

It was one of 525 auctions scheduled across Melbourne on Saturday. By 6.30pm, the Domain Group had recorded a clearance rate of 56 per cent, from 377 reported results.

The 40-strong crowd broke into nervous laughter after the high first bid, before Ms Young came back with an offer of $645,000.

The bidding continued in $5000 increments between Ms Young and the first bidder – who was acting on behalf of friends holidaying overseas.

At $680,000, a new bidder stepped in, and she and Ms Young went in $1000 and $500 increments to $698,000.

By the time Ms Young said $700,000 – auctioneer Michael Divito from McGrath Northcote said “we’re definitely on the market – we’ve probably been on the market since the first bid”. 

Another two $1000 bids and it was hers.

“I’m relieved, excited and nervous – going through the process is a bit unknown I suppose,” Ms Young, who had been searching for a property for 12 months, said. 

Owner Louise O’Shea was surprised by the high price the property fetched, though she said it all evened out as she and her partner “paid too much” for their next home – a house in Reservoir.

Mr Divito said though some similar properties in the area had recently passed in, good results were still possible.

“If it’s priced right, you’re going to have people turn up,” he said.

First-home buyers weren’t so lucky in the west as a developer snapped up a three bedroom, weatherboard home in Yarraville for $997,000 – $97,000 more than the reserve price. 

Agent Nathan Gleeson from Greg Hocking Elly Partners said of the seven bidders at the auction of 67 Benbow Street, four were first-home buyers and the other two who missed out were owner occupiers. 

“The buyer was an investor I’d never seen before, they just showed up on the day,” Mr Gleeson said. 

He said the buyer planned to knock down the property and build two townhouses. 

A three bedroom weatherboard in Greensborough sold to a local couple for $737,000 – $67,000 more than the reserve. 

The property at 14 Bicton Street backed onto Plenty River, attracting at large crowd and three bidders to the auction, Barry Plant Diamond Creek agent Peter Koiker said. 

“It was an absolute drawcard and a beautiful setting,” he said. 

South of the Yarra River, a one bedroom St Kilda unit with a wine cellar passed in at auction.

Agent Marcus Peters from Whiting & Co said there were young buyers in the crowd who would have bid for 5/50 Dalgety Street if they had their finance approved.

“First-home buyers are really having trouble getting approved by the lenders,” Mr Peters said.

The property had one bid of $525,000 from an investor before it passed in. It will be offered for private sale with an asking price of $555,000.

Further south, a four bedroom house at 328 Nepean Highway, Parkdale sold for $1,414,000 – more than $100,000 over the top end of the indicative selling price. 

Agent Trevor Bowen from O’Brien Real Estate Mentone said it was a unexpected result, given the property was right on the main road. 

“It had lots of features including a theatre room and sauna – so it was literally move in and do nothing,” he said.