No bids for stylish South Yarra period home as agent calls ‘shift in the market’

A three-bedroom South Yarra period home, built in 1903, was offered for the first time in nearly half a century at auction on Saturday, passing in on a vendor bid of $1.5 million.

The tuckpointed home at 20 Luxton Road is on a small 222-square-metre block and retains many of its original features, including ceiling roses, Baltic pine floorboards, a tessellated-tile veranda, and a stained-glass bay window.

It had a price guide of $1.7 million to $1.85 million, and a reserve of $1,675,000. Records show it last sold in 1979 for just $40,000.

Listing agent Nathan Waterson from Jellis Craig Stonnington said there were two registered bidders, “both upsizers”, who attended the auction, neither of whom bid.

“We are currently in negotiations with one of them, and another party who had not registered for the auction, and are confident it will sell early in the week,” he said.

“The 3.5 metre high ceilings and spacious rooms were a standout.”

The property, close to Hawksburn Village, Toorak Village and Chapel Street, also included an updated kitchen and off-street parking.

Waterson believed the “wet and cold” action influenced the crowd, with only a “small number of people” watching on.

While he had noticed a shift in the market, he thought most properties in the South Yarra area were still selling.

The property was one of 1051 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auction clearance rate of 56 per cent from 682 reported results throughout the week, while 112 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Parkdale, a first-home buyer – whose mum told him to bid – secured the keys to a one-bedroom unit at auction, paying $466,000.

The brick-facade home at 10/38-40 Rennison Street, which featured timber floors and weatherboard accents, was listed with a price guide of $400,000 to $440,000, and had a reserve of $420,000.

“The buyer had only seen the property the day of the auction,” said agent Lauren Chambers from Ray White, The Bayside Group.

“His mum had inspected it earlier and told him he should bid.”

The new owner was one of three first-home buyers bidding at the auction, with an investor also competing.

Bidding opened at $400,000 and rose in mostly 10,000 increments over the course of the 10-minute auction.

“The last couple of bids were only $250,” said Chambers.

She described the property, which also featured a private courtyard, as “simple, stylish and exceptionally located.”

“The location, close to the beach, and the property’s potential were all drawcards,” she said.

In Bentleigh East, a deceased estate passed in at auction for $935,000 and was sold later that day after negotiations for $950,000 – $30,000 below its reserve.

2/3 Moor Street had a price guide of $920,000 to $980,000 and a reserve of $980,000.

Auctioneer and agent Ben Quigley from Woodards Bentleigh said the sale was a “sentimental one”.

“I originally sold the property to the family in 2009,” he said.

The three-bedroom brick veneer home, the middle of three properties, was turnkey, with timber flooring and open-plan living.

“There was nothing to do to the home, and it presented well,” Quigley said.

With a crowd of around 30 people, three registered bidders attended the auction, but only one was active. They opened the bidding at $910,000.

“Buyers are really hesitant to bid at the moment,” Quigley said.

The bidder, a downsizer moving from southeast Melbourne, ultimately secured the keys later that day after negotiations.

While shy of what they wanted, Quigley said the vendors were aware of the market and “willing to be realistic”.

PRD chief economist Dr Diaswati Mardiasmo said that the auction clearance rate of 56 per cent was “still very low for Melbourne.”

“But it’s not a surprise considering the three cash rate hikes we just had, as well as people still waiting for what might be happening with the federal budget,” she said.

The combination and timing of these factors will affect the Melbourne market moving forward, Mardiasmo believes.

“With the cash rate hike just announced as well, I think many people are re-evaluating their finances, borrowing capacity, [and] mortgage serviceability. And that takes time,” she said.

“I think the clearance rate will still be around this for the next few weeks, as people react and evaluate how the new federal budget impacts them and their household budget.”