A “Palm Springs-style” Brighton house has become the second Melbourne property to soar $1m past reserve in a matter of days.
Four bidders pushed the 12 Farleigh Grove residence to a bumper $5.18m sale price — well above the vendor’s $4.1m asking price — on Saturday.
The home was on the market for the first time in 20 years, CoreLogic records show, having previously fetched $1.06m in 2001.
Meridian Real Estate’s Phillip Georgiou, who sold the property in conjunction with Joel Fredman from Fredman Property Group, said they could have “never predicted that sort of a result.”
“It was astonishing really,” Mr Georgiou said.
“It set a square metre rate (record) for Brighton … the first offer was just under the reserve and two active bidders kept going up in 100k rises.”
Mr Georgiou said a “young local family” ended up purchasing the property and planned to demolish the house to build their dream home.
He added there was a “fear of missing out” among buyers, which helped push results even higher.
“At the moment demand is definitely outstripping supply and as a whole in a suburb like Brighton, there’s always a fight for quality,” he said.
The deal came two days after the staggering sale of a “dilapidated” Armadale house at 62 Rose Street for $5.8m — $1.8m above reserve.
The properties joined 1075 other homes to go under the hammer last week — about twice as many as the week prior, when the Labour Day long weekend quietened the market.
High buyer demand still generated an 85 per cent early clearance rate from the 595 results reported to realsestate.com.au.
Ray White Victoria and Tasmania chief auctioneer Matthew Condon said a continued increase in the number of registered bidders was keeping the competition fierce.
“They are bidding aggressively and in high increments — not $1000 back and forth bids, they are coming out with massive bids,” Mr Condon said.
“Sellers who are choosing to sell in the current market are being rewarded with above-reserve prices.”
Realestate.com.au is forecasting another rise in auction volumes this week, to 1260.
Another Brighton property — a family home on one of the suburb’s “premier” streets — also sold strongly at the weekend, flying about $400,000 past reserve to a $5.9m sale price.
The 4 Sussex Street home attracted a crowd of about 100 people, including four bidders.
Nick Johnstone auctioneer Simone Chin said homes in the area didn’t come up often, making the listing an opportunity buyers didn’t want to miss.
“Since 2020, there are many new motivations for (Melburnians to move),” she said.
“We’re finding it’s a very good time for people in the local area who are expanding or getting to that destination home.”
Meanwhile in Beaumaris, a mid-century family home in the prized Beaumaris Secondary College zone at 2 McNamara Street sold for $1.62m, easily eclipsing its $1.3m-$1.4m quoted range.
And a modern three-bedroom home in Croydon North rose more than $100,000 above reserve to sell for $771,000, after attracting 18 registered bidders.
Ray White Mount Waverley area manager Jay Warnak reported a “a massive turnout at the auction” of 1/20 Humber Road.
“We had first-home buyers, downsizers and families interested, ” Mr Warnak said.
“Low stock and huge buyer demand are both influencing the market. For this to go $110,000 above reserve is amazing.
“Buyers can see, especially in Melbourne, that … in 18 months, they will need to have a bigger budget. So they are being spurred on to buy now.”
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