A downsizer has successfully purchased a two-bedroom villa in Cheltenham for **$887,000** at auction, overcoming competition from a first home buyer. The property, located at **5 Haughton Street**, was listed with a price guide of **$780,000 to $830,000**, with the reserve set at the higher end of the range. The auction took place on Saturday, during a weekend typically characterized by fewer scheduled sales due to the AFL Grand Final.
Bidding commenced slowly at **$750,000**, according to **Ivan Blow**, a selling agent from **Buxton Real Estate Bentleigh**. As the auction progressed, two parties engaged in a competitive bidding war, although Blow noted a third interested buyer who did not have the opportunity to place a bid. “We are seeing particularly the upper end – the upper end is very strong in our area,” he stated, highlighting the improving market conditions.
The current demand is driven by low supply, with many homeowners seemingly waiting to sell as Melbourne’s property market begins to show signs of recovery following a period of stagnation. Blow also pointed out activity in the apartment market, noting that some first home buyers are eager to purchase before the expansion of the federal government’s **First Home Guarantee scheme**, which allows buyers to secure a home with a low **5 percent** deposit.
While Cheltenham saw this notable auction, **95 auctions** were scheduled across Melbourne that day. In **Avondale Heights**, another two-bedroom home sold for **$865,000**, also attracting a first home buyer. **Mark Giardina**, a selling agent from **Nelson Alexander**, listed the property at **84 Thompson Street** with a quoted price range of **$725,000 to $770,000**. Four bidders participated in this auction, with three being first home buyers and one an investor. The bidding began at **$700,000**.
Giardina described the auction as competitive right from the start. “The auction was pretty competitive from the moment that it started; because it started at **$700,000**, it was really quick,” he remarked. Buyers were particularly drawn to the property’s unique features, which included being freestanding and having its own title after subdivision from a larger block. “It was a renovated two-bedroom unit, it was independent so it was on its own little block of land with its own title which is unique,” Giardina added.
This trend of rising auction prices and increased buyer interest reflects a broader shift in the real estate landscape of Melbourne, as many prospective homeowners seek to capitalize on the current market conditions. The results from the weekend’s auctions suggest a resilient demand, particularly at the higher end of the market.
The auction outcomes serve as a reminder of the ever-evolving nature of the property market, where buyer sentiment can shift rapidly based on available inventory and economic conditions.
