Two knockdown-and-rebuild sites snared prices hundreds of thousands above the vendors’ reserves in Glen Waverley and Scoresby on the Labour Day weekend.
Other auction results in the eastern suburbs on the first Saturday in March also pointed to a strong market, according to Barry Plant agents.
At 17 Monterey Avenue, Glen Waverley, 10 bidders, among a crowd of 150, drove the auction to a $1.52 million sale – almost $300,000 above the reserve.
A young couple defeated developers and investors to win the keys to the 722sq m property. Most bidders eyed the property’s development potential.
“It was an amazing result for a property of more than 50 years that will be knocked down,” Barry Plant Glen Waverley agent, Ryan Yan, said.
“The buyers will build a dream home on the block.”
Mr Yan noted a larger block at 16 Monterey Avenue fetched just $1.2 million when it sold in August 2019 when the market was at a peak.
The vendors of 10 Ingrid Street, Scoresby, also had a windfall when their property sold for $869,000 or $139,000 above reserve.
They initially wanted to sell their property 12 months ago with a price guide in the $700,000s, according to Barry Plant Wantirna director, Brendan Murphy.
But then pandemic came and they decided to wait, moved interstate and left the house vacant for 12 months, he said.
Five bidders competed for the 726sq m block which featured an original house of nearly five decades.
The new owners, who had missed out another recent auction, will demolish and build a new home on the site.
The result represents good value for buyers seeking to knock down and rebuild, according to Mr Murphy.
“We sold all three properties up for auction on Saturday and have 20 auctions in March,” Mr Murphy said.
“The results show the market is well and truly alive.”
Meanwhile 13 Billara Close, Wantirna South, soared more than $100,000 above reserve to fetch $871,200 after a drawn-out auction.
“We had six bidders and also bids of just $100 for a long time and the auction took 40 minutes,” Barry Plant Wantirna auctioneer, Daniel Cripps said.
“Local investors bought it and will build a couple of townhouses there.”
The house of more than 50 years was once home to a family of 11 children, according to Mr Cripps.
Selling after auction on the same day, 4 Hilson Close, Wantirna South, had two buyers negotiating with the owners after it passed it for $1.285 million.
“The highest bidder and another buyer were both keen on the property and we negotiated the price to $1.358 million or $70,000 above the passed in price,” sales agent, Ricko Su, said.