Young couple win the keys to $700,000 Cheltenham pad at auction

Only first home buyers competed for a two-bedroom unit in Melbourne’s south-east at auction on Saturday, with the keys going to a young couple who made a winning bid of $700,000.

The single-level home at 2/105 Park Road, Cheltenham, guided at $600,000 to $650,000 and with a reserve of $660,000, comes with a double garage and a small courtyard.

SOLD - $700,000

12/105 Park Road, Cheltenham VIC 3192

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

This is the first weekend of auctions since the federal government’s expanded Home Guarantee Scheme has been in place. Now, first home buyers on any income can use the guarantee and buy with a deposit of 5 per cent. The property price has been increased to $950,000 in Melbourne and the number of places is uncapped.

Ray White Bayside Group listing agent and auctioneer Angela Limanis said while the buyers were not part of the scheme and had been looking for a home for five months, two of the four bidders that day had already signed up for the scheme.

“They were all first home buyers… I think they came in with the expectation that if it goes over $660,000, maybe into the high sixes, well, you know, we’ll be involved,” she said.

Limanis said the expanded scheme, which has eliminated income caps, has resulted in extra inquiries.

“For months now, we’ve been getting all these inquiries from buyers and advocates even, asking us [if we have] any off-market properties to keep them in the loop,” she said.

“People like our buyers love the area … having the train within walking distance is a bonus, especially since the Cheltenham station has an express train into the CBD.”

The property was one of 1074 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 70.2 per cent from 811 reported results throughout the week, while 66 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Carnegie, a couple downsizing from Mount Martha outbid investors and a young family for keys to a house in need of a refresh, paying $1,235,000 at auction.

Ray White lead agent Olivia Petrou said the house at 21 Railway Road, listed with a guide of $1 million to $1.1 million, was an investment property that was once home to the vendor’s mother.

SOLD - Price Withheld

21 Railway Road, Carnegie VIC 3163

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“The property had been in the family since 1985, so there was some emotional attachment there,” Petrou said.

While there were four bidders, she said it “felt like the auctioneer was drawing blood for a moment,” attempting to entice buyers conscious of high building and renovation costs.

The underbidder was a young local family who wanted to live near their kids’ school, she said.

Earlier, a couple looking for a part-time residence in Melbourne’s CBD snapped up a two-bedroom, two-bathroom Carlton apartment at auction, paying $80,000 over the reserve.

Guided at $600,000 to $650,000, the 106/94 Canning Street unit offers easy access to Lygon Street, Rathdowne Village and Brunswick Street, and sold for $740,000 after a short bidding war between five parties.

SOLD - $740,000

106/94 Canning Street, Carlton VIC 3053

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Jellis Craig Fitzroy selling agent David Ashby said the campaign had been very popular, with 80 groups interested in the inner-north property.

“In the end it was a pretty quick auction,” he said. “The opening bid was $675,000 and continued in increments of $10,000 before going to $5000 and $1000.”

The underbidders included a first home buyer accompanied by her parents, and another couple who lived in the country and were looking for a city residence. The reserve was $660,000.

Ashby said the apartments market, especially in Melbourne’s inner-city, had shifted significantly in the first home buyer space.

“It’s a good time to sell, but it’s a double-edged sword for buyers with the first home buyer benefits coming in. It has upped competition for them,” Ashby said.

In Yarraville, a home held by the same family for 51 years sold under the hammer for $1,421,000.

SOLD - $1,421,000

31 Mackay Street, Yarraville VIC 3013

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The three-bedroom California bungalow at 31 Mackay Street, close to Yarraville Gardens, cafes and schools, was listed with a guide of $1.05 million to $1.15 million and had a reserve of $1.05 million.

Buxton Inner West’s Matthew John said 150 groups inspected the home during the campaign.

“It bucked the turnkey trend for several reasons,” he said. “It’s on a corner block on what would be two of Yarraville’s most popular streets – it’s very rare to see a property come up for sale on Mackay Street.”

John said buyers saw the property’s potential.

“You may have to get your hands dirty, but it will absolutely pay off – after renovation, that home will be one of the best homes in the market,” he said.

The buyer, a woman from South Caulfield, intends to rent it out before eventually moving in, while the underbidder was a local family hoping to upsize.