Inner-city terrace sells for $1,255,000 after passing in on a single bid

A corner-block terrace in the heart of Fitzroy sold in post-auction negotiations on Saturday for its $1,255,000 reserve, after passing in on a single bid.

The two-bedroom home at 241 George Street is just a minute’s walk from the historic Napier Hotel and nestled between Brunswick, Smith and Gertrude Streets.

Largely original but well-maintained, it features a decked courtyard and balconies on both floors, with a price guide of $1.2 million to $1.3 million.

Jellis Craig Fitzroy agent and auctioneer David Sanguinedo said he had three contracts out in the lead up to the auction, with several last-minute inspections on Friday night.

He opened the auction with a bid of $1.2 million from a young couple, which is where it stayed. Sanguinedo went inside to talk to the vendor, then called for bids one last time before passing the home in.

As the high bidders went in to negotiate, several onlookers lingered, with another couple saying they were interested but had failed to secure building and pest inspections.

The buyers met the vendor’s $1,255,000 reserve, and Sanguinedo said they were keen to move into the area after renting in Brunswick. The vendor is moving to another property in Fitzroy.

“I think there’s a lack of consumer confidence,” he said.

“Putting deals together now is a lot harder, and it takes a lot more nurturing and nursing.”

The property was one of 448 scheduled to go to auction in Melbourne this week. By evening, Domain Group recorded a preliminary auction clearance rate of 55 per cent from 262 reported results throughout the week, while 52 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Pascoe Vale, a two-bedroom villa sold for $602,000 under the hammer, with four bidders pushing the price more than $50,000 over the top of its guide.

Close to Devon Road and minutes from many local parks, 3/43 Arndt Road had a price guide of $500,000 to $550,000 and a reserve of $560,000.

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

Jellis Craig Northern agent Tayla Burr said bidding opened at $510,000 and went up in $10,000 increments, before trickling down to $5,000, $2000 and $1000 bids, as an investor pulled out in front to win the day.

“There’s been a couple that we’ve sold recently to interstate investors because the market in Sydney is just through the roof,” Burr said.

A modern three-storey terrace house overlooking a leafy square in Carlton sold at auction for $2,225,000, with two bidders pushing it $125,000 above the reserve.

The three-bedroom, city-edge home at 54 MacArthur Place North was listed with a price guide of $1.85 million to $2 million, and featured a rooftop deck, views to MacArthur Square, and a “move-in ready” modern design.

Marshall White agent and auctioneer David Lettieri said bidding was opened by the under bidder at $1.75 million, and rocketed up with bids of $25,000 for the duration of the auction, quickly passing the $2.1 million reserve before finally selling.

Lettieri said the winning bidders were based in Bendigo and had been looking for a larger base for when they came into the city. The house was sold as part of a deceased estate.

Despite a long weekend and lower clearance rates, Lettieri said the result indicated the market might be healthier than expected.

“If this is a picture of the market, $125,000 above the reserve with two bidders, then obviously it’s pretty good,” he said.

“But it’s a very strategic process now, on every facet of our selling process.”

In East Melbourne, a one-bedroom apartment in an art deco block passed in on an opening vendor’s bid of $550,000, as two prospective first-home buyers failed to bid despite earlier interest.

The north-facing, freshly painted and newly carpeted home at 16/84 Grey Street, with a price guide of $550,000 to $600,000 and a reserve of $600,000, was part of the historic Belgravia Square.

With simple period charm and an affordable price, RT Edgar agent Michael Ebeling said he’d had a lot of interest from first-home buyers, but delays with approvals on the Australian Government 5% Deposit Scheme and concerns about the threat of more rate rises over the coming months had held bidders back.

“I’m confident it will sell early next week,” Ebeling said, noting that he was seeing investors “step back” from the market, which meant focusing campaigns on first-home buyers.

“And many don’t have the money to get a 10 per cent deposit ... so you have to be more patient with them.”