Auction boom in Reservoir with high listing and clearance rate numbers
Bumper auction crop in Melbourne’s north as autumn market sizzles
Reservoir led the way as autumn saw a record auction selling season for Melbourne’s northern suburbs.
The Darebin suburb recorded more auction transactions than any other Melbourne suburb, with 188 sales from 246 auctions from March to May.
A total of 12,267 homes went under the hammer in the Victorian capital and generated a record 10,042 sales, according to Real Estate Institute of Victoria data.
Auction listings in the northern suburbs performed particularly well, including Craigieburn, Preston and Northcote, where a total of 316 homes sold under the hammer.
Pent-up demand from last year’s lengthy lockdowns, government grants, low interest rates and stamp duty reductions fuelled the record-high sales.
“There was also a rise in listings as landlords started selling up their investment properties due to new tenancy legislations,” Mr Kontossis said.
“Auctions attracted multiple bidders in the $500,000-$750,000 range, and pretty much all homes sold above reserve.”
First-home buyers battled for properties priced at $500,000-$1.1 million, including 1/6 McCrae Street, Reservoir, which attracted five bidders and sold for $750,000.
Drawn by its affordable price and proximity to the train station, a young first-home buyer from Parkville bought the three-bedroom unit.
“Property prices have soared $200,000-$300,000 since the start of the year,” Mr Kontossis said.
“House prices jumped 20-30 per cent in April and May, with period homes in strong demand at $1.4-$1.5 million.”
He pointed to the three-bedroom house on 1180sq m at 13 Dundee Street, Reservoir, which attracted five bidders and sold in May for $1,232,500.
The substantial home was snapped up by a local buyer who paid above its owner’s price hopes because of the block’s wide frontage and potential.
There was also a surge in sales of development sites, with buyers paying well above the seller’s prices, according to Mr Kontossis.
In May, three bidders battled for the two villa units on a 2047sq m double block at 762-764 Plenty Road, Reservoir, which sold to an investment group for $3.135 million.
“This is one of the largest residential holdings in the district and a big price for the area,” Mr Kontossis said.
Many homes also sold off-market in the autumn months, including the four-bedroom single-storey house at 91 Crookston Road, Reservoir, which was snapped up for $1.35 million by a buyer on the agency’s database.
“They had missed out on other homes in the area and were waiting to pounce,” Mr Kontossis said.
“So we matched them up to this Metricon-built property and they paid above the owner’s price to secure it before going to market.”
Mr Kontossis expected rising demand and low stock levels will continue to push prices up in the winter months, particularly in Reservoir’s sought-after pockets south of Broadway and Edward Street.