First-home buyers beat friends for $1.15m Highett weatherboard home

First-home buyers were confronted by an unexpected competitor at the auction of a $1.15 million Highett weatherboard on Saturday - their friends, who propelled them $100,000 above reserve.

The underbidders, a young couple, embraced the new owners after the hammer fell at 9 Albert Street. The three-bedroom, double-storey townhouse had a guide price of $960,000 to $1,050,000, and a reserve of $1,050,000.

The surprise twist made for an emotional conclusion to the auction.

“They didn’t know they were on the same property,” auctioneer and listing agent Ben Quigley of Woodards Bentleigh said.

However, the rivalry was for the auction floor only.

“They wished them all the best,” he said of the couple who missed out. “So that was very touching.”

Two other prospective buyers expressed intent before the auction, but it all came down to the first-home buyers and the young couple, each with a support crew: the underbidders were represented by a buyers’ advocate, and the winning pair had one of their fathers in tow.

Quigley opened on a vendor bid of $960,000 and the advocate responded with a $10,000 bid. It ploughed along in the same increments until the gavel dropped.

“It was a great family event,” Quigley said of the celebrations. He last sold the property 20 years ago to the happy vendors.

The home was one of 1324 scheduled auctions in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary clearance rate of 61 per cent from 979 reported results, while 122 properties were withdrawn (and counted as unsold). This is down from 65 per cent at the same time last year.

In Glenroy, an agent changed tactics after absent buyers scotched their plans.

An auction was scheduled for 1/7 Gladstone Parade, a modern two-bedroom townhouse, but the auctioneer never made it onto the kerb.

Just one first-home buyer registered and turned up, so agent Abdullah El Hosari of Ray White Glenroy took them inside to privately negotiate.

“We were expecting two more but unfortunately, they dropped out due to other options in the market,” he said.

Neighbours gathered on the street, expecting to see some action, but it was all behind closed doors. The sale of $533,000 was $3000 above the $530,000 reserve, against a guide of $490,000 to $530,000.

The property is at the front of a complex of seven and El Hosari said the annual body corporate fees of $4600 was a deterrent.

“We’re seeing a lot of first-time buyers being a little bit cautious in terms of purchasing anything with outgoing fees,” he said.

The first-home buyer is from Epping and wanted to be closer to the city.

“The affordability in Glenroy, as opposed to what you can purchase in other suburbs for the same price, makes it a no brainer,” Hosari said.

In Frankston, first-home buyers nudged out an investor to pay $646,000 at auction for a neat villa at 59A Orwil Street.

The three-bedder on a dual subdivision had a size between a house and an apartment, and this broadened its appeal, agent George Devic of Ray White Frankston said.

Among the five bidders were three first-home buyers, the investor and a young family.

“It offered its own grounds and title with the flexibility for rejuvenation,” Devic said.

The guide was $550,000 to $590,000 and the reserve set at $580,000.

Bidding opened at $550,000 and was competitive until $617,000, when three bidders “faded away”, Devic said.

The last two traded tenacious $1000 bids until the end. The new owners are from Vermont.

“We are seeing a lot of out of area purchasers moving in,” Devic said.

The market up to $950,000, which is the cap for the Australian Government 5% Deposit Scheme deposit scheme, is competitive.

“We are seeing some mums and dads helping them beyond that if required,” Devic said.

AMP chief economist Shane Oliver said the preliminary clearance rate, which he expects will be revised into the high 50s when the results are complete, reflects the softening Melbourne market and the global outlook.

“The events in the Middle East have added caution because there’s worries about more inflation and interest rate hikes,” Oliver said. “A clearance rate in the high-50s, historically, is consistent with flat house prices in Melbourne.

“Melbourne started off the year okay, and then it seems to have progressively slowed.”