A mature couple has successfully acquired a free-standing villa unit in Bentleigh for $1,151,500, significantly exceeding the reserve price by $231,500 during an auction on March 23, 2024. The property, located at 2/6 Jeffrey Street, features two bedrooms and one bathroom, and was initially guided at $900,000 to $930,000. This sale forms part of a larger trend in Melbourne, which saw a total of 855 auctions scheduled on the same day.
The bidding attracted a mix of participants, primarily downsizers and first-time home buyers. According to Simon Pintado, lead agent at Buxton Real Estate Bentleigh, two daughters represented their parents in their 60s, who were eager to downsize. The underbidder was a couple looking to upgrade from an apartment. A total of three parties engaged in the bidding process, which commenced with an opening bid of $900,000 and quickly surpassed the reserve of $920,000.
The vendor, an orchestra conductor relocating overseas, had purchased the unit in 1995 for $141,500. Pintado expressed satisfaction with the final selling price, indicating that the market has shown increased confidence in recent weeks. “Confidence in the market has gone up in the last month, and is probably up 50 percent from what it was a few weeks back,” he noted.
As interest rates trend downward, Pintado also highlighted that potential buyers are beginning to recognize Melbourne’s value compared to other major Australian cities. He anticipates that this awareness may signal the beginning of a growth cycle lasting between three to five years.
In a related auction, another villa unit in nearby Hampton sold for $1,071,000 to first home buyers represented by an advocate. The property, located at 1/223 Thomas Street, featured a study and a privately hedged front garden. This auction attracted two bidders: the first home buyers and an investor, also represented by an advocate. The bidding began at $950,000, initiated by the investor, but ultimately concluded with the first home buyer securing the unit.
Lead agent Ewan Bennett from Marshall White noted that while he has not observed significant changes in the market recently, buyers are increasingly recognizing the value available to them. They appear willing to invest in property now that interest rates are declining, reducing concerns about potential devaluation post-purchase. Bennett stated, “They are certainly prepared to either invest or spend the money needed to buy into the market due to the belief that because rates are going down, there will no longer be the risk of their property devaluing after purchase.”
The contrasting dynamics of the Bentleigh and Hampton auctions illustrate the evolving landscape of Melbourne’s real estate market, as both downsizers and first-time buyers engage in competitive bidding for properties that cater to their needs. As confidence continues to grow, the outlook for the market remains promising.
