Clever architect-designed reno banks Richmond sellers $4.2m payday

A local family paid $4.2 million for a renovated four-bedroom Victorian home in Richmond at auction on Saturday, winning the keys from vendors they already knew.

The home at 303 Lennox Street was renovated by Matt Gibson Architecture + Design 10 years ago and features a garage with a smart rooftop terrace and a spa.

The house was listed with a price guide of $3.8 million to $4.1 million and had a reserve of $4 million.

The property was one of 1781 scheduled auctions in Melbourne last week. By Saturday evening, Domain Group had recorded a preliminary auction clearance rate of 59 per cent from 1302 reported results, while 187 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

Selling agent Elliot Gill from Jellis Craig Richmond and Surrounds said that the Lennox Street sale was a “strong result.”

“There haven’t been many renovated homes that come to market in Richmond Hill for a while,” he said.

There were four registered bidders: a couple, a downsizer and two Richmond families.

“Only the two families put their hands up to bid, and it was fought out between them,” Gill said.

The auction opened at $3.8 million and rose in $5,000, $10,000, and $20,000 increments.

The sellers, who are moving into another home they renovated close by, knew the buyers.

“They are both local families, so the seller was really happy that they got it,” Gill said.

Elsewhere, a Spotswood house that had been in the family for decades sparked a bidding war among four bidders, selling under the hammer for $1,716,500 to an inner west family, more than $240,000 above its reserve.

The three-bedroom home at 41 Mary Street, set on 736 square metres, was listed with a price guide of $1,375,000 to $1,475,000 and a reserve of $1,475,000.

Selling agent John Galea from Jas Stephens Real Estate said he was “pinching himself” about the result.

“It was a standout result; the sellers and I were in a state of disbelief,” he said.

“The sellers grew up in the home. It was a deceased estate, so it was very emotional with hugs all round.”

Four active bidders took part in the Spotswood auction: two families, a younger woman from Mitcham, and a couple who were visiting family in Western Australia on auction day.

“They were watching on a friend’s phone via a video call and making bids via my colleague,” Galea said.

Two investors also watched the proceedings but did not make any bids. The auction opened at $1,375,000 and quickly rose to $1.52 million.

“Then one bidder dropped out and another came in,” Galea said.

The ultimate buyers, a family of five from Yarraville, were looking for a family home with both a spacious interior and a large block of land.

“It’s hard to find properties that offer both enough living and bedrooms for a family of five and backyard space, too,” Galea said. “I think this is what really pushed the price up because they are rare to come onto the market, and when they do, they are often snapped up by investors.”

Galea said that the result was a promising sign for the market. “The cost of living, the rise in interest rates – there is always a crisis going on, so when these opportunities come up, they still get good results.”

Elsewhere, in St Kilda, a four-bedroom Victorian with an independent studio was passed in at auction on a vendor bid of $1.55 million.

The home at 11 Farmer Street, close to St Kilda Road and Inkerman Street, had a price guide of $1.5 million to $1.6 million and a reserve of $1.625 million.

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

Listing agent Sam Hobbs from Jellis Craig Port Phillip said he expected the property to sell later this week.

“We have two conditional buyers who are just sorting out some details, one with council and one with finance,” he said. “They are both interested but just weren’t ready.”

Hobbs said that the home offered good value for money. “The rear studio offers flexible living; the land size and rear deck are also appealing.”

The seller is looking to move closer to family.

The market in St Kilda and surrounds had been “pretty good,” said Hobbs. “Today wasn’t the result we were looking for, but overall, things are selling well and quickly.”

PRD chief economist Diaswati Mardiasmo said the auction clearance rate was the lowest it had been in quite a while.

“This isn’t surprising given the financial pressures many Australians are facing with the rising cost of living, interest rates, and fuel. This is translating into the market,” she said.

Mardiasmo doesn’t expect much change in the Melbourne market for the next few weeks.

“I think until the next RBA announcement in May, it will hold steady or even drop a bit more,” she said.