'The market is not cooling here': Fitzroy North terrace sells for $2.51 million

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There was no sign of Melbourne’s cooling housing market at the auction of a terrace in the city’s inner north that sold for more than $700,000 above reserve on Saturday. 

The dated, four-bedroom Victorian in Fitzroy North was one of 1124 scheduled auctions across the city, well up on last week’s 756 auctions. By evening, Domain Group had recorded a clearance rate of 65.2 per cent from 880 reported results.

Set on 414 square metres with two street frontages, 135 McKean Street is just a stone’s throw from Edinburgh Gardens. And it would seem real estate in the area is in high demand. 

The opening bid set the tone for the auction. It was bang on the reserve price of $1.8 million and the property was immediately declared on the market by auctioneer Mark Verrocchi, of Nelson Alexander. 

Among the 60-strong crowd of onlookers were four local bidders – from Fitzroy, Fitzroy North and Collingwood. 

Bids went up in $50,000 jumps until $2.15 million, where it dropped to $25,000 increments.

At $2.4 million, there were only two left in the race, exchanging bids of $5000, then $1000. 

The hammer came down at $2.51 million, well above the suburb’s median house price of $1,487,000.

The vendor, an elderly man who bought the house for $35,000 in 1976, was unsurprisingly thrilled with the result. 

The buyer, a local investor who did not wish to be identified, will likely gut the house, renovate and rent it out. 

The underbidders, young developers from Fitzroy, had also hoped to renovate the home and build a second residence at the rear. 

While clearance rates have flattened across Melbourne in recent months, Mr Verrocchi said the popular suburbs of Fitzroy and Fitzroy North were still performing strongly.

“I don’t think the market is cooling in Fitzroy,” he said. “I think people want to be near the city.” 

McKean Street appears to have struck a chord with buyers and sellers recently. There were at least eight properties with a “for sale” sign on Saturday. 

Less than 200 metres down the road at 45 McKean Street, a small, two-bedroom terrace home passed in without a bid when it went to auction just minutes after 135 McKean Street sold. 

Collins Simms listing agent Nicholas Corby said the property sold after auction for $1.2 million, within its advertised price guide of $1.15 million to $1.25 million. 

Last month, a derelict two-bedroom terrace, a few doors up at number 55, sold for $2,002,000. Although it was on only 263 square metres, it was particularly appealing because it had dual street frontage and the potential to add a second storey. 

High-end niche properties are still proving harder to sell. Later on Saturday, in Little Smith Street, a warehouse conversion passed in $1,925,000 but sold for $2,015,000 after negotiations. 

The home had a price guide of $1.82 million to $2 million. 

Jellis Craig‘s Bev Adam said the bidding from the two registered parties was “considered”. She said the uniqueness of the property meant there were few serious buyers. 

“It’s very unique,” Ms Adam said. “These properties are hard to find.”

In Brunswick, a mixed-zone building, with a shop front on the ground floor and a two-bedroom apartment on the top floor, sold for $1.61 million against a reserve of $1.35 million. 

“We had two very aggressive bidders,” said auctioneer and listing agent Nuno Raimundo of Nelson Alexander. 

The versatile property at 334 Victoria Street had appealed to entrepreneurial types. “There was someone that wanted it as a clothing shop and there was somebody else that wanted it as a cafe,” Mr Raimundo said. 

But when it went under the hammer on Saturday afternoon, it was between a man who ran a 3D printing business and an architect-designer duo.

“They both wanted it and they just went for it,” Mr Raimundo said. “It surprised me.” 

It was the duo who secured the keys. The pair plan to rent out the apartment, which currently is fetching $500 a week, and run their business from the shop front, located just moments from Sydney Road.