Cheltenham home with sauna sells for $2,425,000 to only bidder

An architecturally designed home with a custom-built sauna in Melbourne’s south-east sold at auction on Saturday for $2,425,000, netting its vendors $25,000 over reserve.

The five-bedroom, three-bathroom home at 11 Davie Avenue, Cheltenham, designed by McGann Architects, was listed with a price range of $2.4m to $2.5m, and a reserve of $2.4m.

Ray White The Bayside Group’s selling agent Kevin Chokshi said only one bidder attended and participated in the auction.

“The auction opened with a vendor bid of $2,300,000, and then the registered bidder put their hand up for $2,350,000 before increasing to the selling price of $2,425,000 during the live auction negotiation,” Chokshi said.

The Cheltenham pocket, part of the Bayside Council, was a major draw for the new owners, but the property’s style and features – including a private alfresco with an inbuilt barbecue, a custom-built sauna, and an outdoor shower – were also appealing, he said.

“It is a stunning property,” said Chokshi, adding the buyers, a local couple, were looking for a large, low-maintenance home.

“It definitely ticked those boxes,” he said.

The auction attracted a crowd of about 60 to 70 people, both “people researching the market and neighbours.”

“The market is still good for quality properties like this one, but we are not seeing much interest from investors,” Chokshi said.

The property was one of 921 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 56 per cent from 628 reported results throughout the week, while 121 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Melbourne’s inner north-east, a period home renovated in the mid-90s sold under the hammer for $1,780,000.

The three-bedroom house at 61 O’Grady Street, Clifton Hill was listed with a price guide of $1,700,000 - $1,800,000 and had a reserve of $1,770,000.

Selling agent Roland Paterson from Nelson Alexander Fitzroy said bidding opened at $1,700,000.

“There were three registered bidders, all professional couples, but only two managed to get their hands up,” he said.

Bidding rose in $20,000 increments before slowing to $10,000 increments.

The underbidder was a young professional couple, and the new owners were “professionals in their mid-thirties,” said Paterson.

Paterson said the south-facing property, with no car access, “needs a bit of work,” but still had much to offer buyers.

“It has good land, good schools, and location… It’s a good part of the world; I actually used to live in the neighbourhood, and it’s very friendly and sociable, which the buyers liked,” he said.

Paterson said that he had noticed a slight change in the market this week.

“We aren’t out of the woods yet, but it is definitely a bit more optimistic,” he said. “I think that now it feels the Hormuz, Iran situation is wrapping up, rates feel like they’re on hold, and people have adjusted.

In Melbourne’s outer east, a large family home that had belonged to the same owner for 47 years passed in at auction and sold later that day for $1,320,000.

The house at 2 Roy Street, Donvale, featuring four bedrooms and two bathrooms, had a price guide of $1,280,000 to $1,380,000, and a reserve of $1,320,0000.

There were no registered bidders at the auction, but a “large crowd” watched, according to selling agent Theo Politis from Barry Plant, Manningham.

Despite the large crowd, the property passed in without a bid, and negotiations then began with interested parties who had previously inspected it, culminating in an offer and sale for $1,320,000.

“The new owners are a local family relocating for the school zone,” he said.

Zoned for East Doncaster Secondary College, the property is also located on a generous 650 square metre corner block and has “great street presence,” said Politis.

The seller, the property’s sole owner, is downsizing.

Despite the lack of activity at this auction, Politis said that the market is still “quite good.”

“The owner-occupier market is quite strong, but the investor market has slowed,” he said. “Each property is different, but good family homes are in demand.”

LJ Hooker’s head of research, Mathew Tiller, said the Melbourne auction rate has been “pretty consistent.”

“It isn’t too bad but not like it was at the same time last year when there were lower interest rates,” he said.

Buyer confidence has been affected, which has had a significant impact, he added.

“The interest rate rises, Federal Government tax policy announced at the Budget and cost of living is making buyers hit pause,” Tiller said.

“It has also taken the steam out of the investor market. The investor market is waiting until the legislation goes through to see what it means for them.”