Developer buys ‘vandalised’ house in Eumemmerring for $732,000

A dilapidated weatherboard home in Melbourne’s outer south-east sold for $732,000 at auction on Saturday – $132,000 above its reserve.

The three-bedroom house at 62 Doveton Avenue, Eumemmerring, set on a large 797m² block, had a price guide of $640,000 to $700,000, and a reserve of $600,000.

Selling agent Shabana Rexhepi from Real Estate Xpert said the reserve had been lowered during the campaign.

“The property was actually vandalised after it had been put on the market, with copper pipes being stolen and damage being done, so the reserve was lowered,” she said.

Three bidders took part in the auction: two developers and one first home buyer. Bidding opened at $590,000, rising in $20,000 increments before lowering to $10,000, $5,000, and then $1000.

Ultimately, one of the developers beat out the first home buyer, who was the underbidder.

“They plan to demolish the home and build units,” Rexhepi said.

While the market has been tougher in recent weeks, Rexhepi said her real estate business, which specialises in selling to builders and developers, has been an advantage.

“My husband and I, who are both registered builders, give us a point of difference,” she said. “We have a big database of developers whom we can call on, which is helpful at the moment.”

The property was one of 448 scheduled to go to auction in Melbourne last week.

By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 55 per cent from 262 reported results throughout the week, while 52 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Melbourne’s north, three bidders competed for a renovated Californian bungalow, which sold for $1,300,500.

The four-bedroom family home at 27 Emma Street, Fawkner had a price guide of $1,200,000 to $1,300,000, and a reserve of $1,280,000.

Ray White Glenroy selling agent Omer Koksal said all three bidders were second home buyers looking to upsize, with two living in neighbouring suburbs.

“It was funny because the owners, who have lived in the home for 18 years, are also upsizing,” he said. “They watched the auction live-streamed from London because they were on holiday there.”

Bidding opened at $1,180,000 and rose in increments of $20,000 and $10,000.

“The successful bidders are a young couple expecting a baby who currently live in Preston,” said Koksal.

He said that the campaign was “very successful”, with around 65 groups inspecting the home, which featured hardwood floors, a designer kitchen and an outdoor, undercover area with a pizza oven.

“The home was immaculate; you didn’t need to spend a dollar on it, so it was very
attractive,” Koskal said, adding this factor also made it a standout result amid what he described as an “awkward phase” in the market.

“This campaign and auction had the most action in the last four weeks,” he said.

In Berwick, a three-bedroom family home sold at auction for $845,000 – below its $860,000
reserve.

The house at 17 Argyle Court, featuring two bathrooms, a double lock-up garage and generous garden had a price guide of $860,000 to $900,000.

Selling agent Martina McArdle from LITTLE Real Estate Victoria said two bidders took part in the auction, which opened with “a silly bid”.

“One person opened the bidding with a bid of $750,000; it was a silly bid,” she said.

The other bidder, an investor, placed the second and only other bid of $845,000, which was the price at which the property was ultimately sold.

“He plans to rent it out for a few years, renovate and move in,” McArdle said. “He really just wanted to get into the area because of the school catchments.”

The seller was an elderly man moving into aged care. McArdle said the marked had “dropped off considerably” since the federal budget was handed down in May.

“Investors are selling because the capital gains tax is not in their favour,” she said.

PRD chief economist Dr Diaswati Mardiasmo said auction clearance rates had remained relatively steady over the past few weeks.

“They are lower than the usual strong Melbourne auction clearance rate, as many investors are still either in a holding pattern to see whether the federal budget investment tax bill will be passed as legislation, or figuring out the best investment structure for their personal finances,” she said.

More generally, Mardiasmo said that there was still a cautious buyer base.

“Many reports suggest that capital city prices have started to decline in the past month, which is especially evident in Melbourne,” she said.

“We do have many buyers who are waiting to see if there are further price reductions.”