Buyers flock to residential land auctions in Narre Warren South
Vendor cashes in on four blocks of land in heated auctions
With very little land left in highly sought-after Narre Warren South, the uncommon method for selling blocks of land seemed like the savviest option for the vendor.
Four residential blocks were auctioned on May 15, drawing a crowd of more than 80 people, with a minimum of five bidders for each lot.
The lots at42,44,46 and48 Bonette Circuit, Narre Warren, vary between 443sqm, 448sqm and the largest at 553sqm.
Narre Warren South is a ‘highly desirable’ location with very little land opportunities left, according to Barry Plant Berwick auctioneer Gabriel Nigro.
“These are some of the last blocks you can get in this region and they are in demand because they are a good size and in a great location,” he said.
“Although auctions are not a common practice for selling residential land, it was undoubtedly going to drive the best result for our vendor.”
Each block was auctioned consecutively.
“We had multiple bidders for each lot and if a group missed out on one, they would just try their luck at the next,” Mr Nigro said.
“One couple just missed out on the first auction and went on to bid even harder at the second and were lucky enough to win it.”
Bidders and buyers were made up of couples and young families looking to build and reside in the area, which is close to great schools and shops, according to Mr Nigro.
“The auctions were very spirited, especially number48, it went up in $500 and $1000 increments for $30,000, until selling for $500,500.”
Each block exceeded the seller's reserve price of $450,000. The smallest block at46 Bonette Circuit sold for $462,000, while the biggest block at44 Bonette Circuit sold for $586,000.
The seller is a local business owner in Berwick who held on to the blocks as part of a deal when he sold off the majority to a developer who built the surrounding estate.
“It is very irregular to auction blocks of land, but considering the strong market and scarcity of land in the south east, we are auctioning most of our stock,” Mr Nigro said.
“Auctions allow buyers to pay over and above market value if that’s what it takes, putting them in a competitive scenario that drives bidding to the absolute top dollar.”
The median sale price for houses in Narre Warren South in the March 2021 quarter was $691,000, a quarterly price rise of 7.1 per cent, according to Real Estate Institute of Victoria data.
Related:
Heated auction action in Melbourne’s south-east