Yarraville vendors gain double payday as underbidder buys the new home next door

Yarraville vendors gained a double payday on Saturday, selling a brand-new townhouse under the hammer for $1.46 million – then selling an almost identical vacant home next door to the underbidder for $1.39 million.

The auction at 8b Hawkhurst Street was guided between $1.25 million to $1.35 million, and had a reserve price of $1.4 million.

$1,250,000 - $1,350,000

8b Hawkhurst Street, Yarraville VIC 3013

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There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

Leo Dardha, director and auctioneer from Woodards Yarraville, said it was a “great auction result” reflecting the high standard of the townhouse.

“The owner-builders brought a high-quality product to Yarraville,” he said.

The four-bedroom property features stone benchtops, high-quality appliances, and fittings, with an open-plan living and dining area and a lock-up garage.

“The hotel-style bathrooms, quality joinery, and the overall build were just tastefully done,” Dardha said.

The auction opened with a $1 million bid and then increased in $25,000 increments.

“Then there was a $75,000 attempted knockout bid, which did see one party drop out, followed by a quick succession of more $25,000 bids until it got to $1.45 million when I called it on the market,” said Dardha.

“I couldn’t call it any earlier because it was just so hot.”

Three active bidders, a mix of young couples and young families, participated, and a young family won.

With the townhouse next door also built and owned by the same vendors as the property just sold at auction, Dardha suggested to the two parties who missed out that they inspect it.

“One took me up on the offer, and after we had a look through, they bought that one for $1.39 million,” he said. “And then the other underbidder came up and asked to see it, and I had to tell them it was already sold.”

The property was one of 1184 scheduled auctions in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 71.5 per cent from 911 reported results, while 72 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Ascot Vale, a family relocating from nearby Flemington secured the keys to a renovated Victorian terrace for $1.63 million.

SOLD - Price Withheld

47 Kent Street, Ascot Vale VIC 3032

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The home at 47 Kent Street, built in 1890, had a price guide of $1.45 million to $1.55 million, and a reserve of $1,575,000.

Four active bidders, all families looking to upsize, took part in the auction, which was held in the property’s backyard in front of a crowd of about thirty.

The bidding opened at $1.5 million and then “went up in $25,000 and $20,000 bids, then slowed down later to $10,000 and $5,000,” said selling agent Adam Hicks from Jellis Craig Kensington.

The quality renovations completed 10 years ago, including hydronic-heated polished concrete floors and European appliances, were a drawcard for prospective buyers.

“The renovation was of a high standard and completed by a well-respected local builder,” said Hicks.

The property last sold in 2013 for $750,000, records show.

Meanwhile, in Ferntree Gully, a first-home buyer paid $952,000, $112,000 over the reserve, for a three-bedroom home with dual street access.

Auction ($780,000 - $840,000)

7 Scenic Court, Ferntree Gully VIC 3156

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The updated home at 7 Scenic Court, on a corner block of 683 square metres, had a price guide of $780,000 to $840,000 and a reserve of $840,000.

Three active bidders – a mix of first home buyers and a young couple – participated in the auction, which opened at $730,000.

“The second bid of $120,000 brought it up to $850,000 and put it officially on the market,” said lead agent and auctioneer, Matt Morris from Ray White, Ferntree Gully.

Morris said a bidder dropped out after this bid, leaving two others to go back and forth until it was sold, with the knockout bidder, a first-home buyer, successful.

“The new owner took my advice of pretending to have more money than you actually do,” Morris said.

Morris said that the buyer wanted to purchase a property before October 1st.

“It’s a trend I’ve noticed recently, with buyers concerned that after October 1st, when the new first-home buyers grant comes in, there will be more competition for properties and prices will be pushed up,” explained Morris.

“My advice for buyers is to get in before this date,” he said.

Mathew Tiller, head of research from LJ Hooker, said the steady auction clearance rate of above 70 per cent demonstrated there was buyer interest and demand in the Melbourne market.

“The number of auctions has been increasing over the last couple of weeks, as have the listings,” he said.

“But the number of listings compared to auctions is a bit higher than what we normally see, indicating that vendors are seeing auctions as a way to get the best result.”