‘Skewed perception of market conditions’: First home buyer bids $190k for outer east unit which sold for $492k

After a bold first bid of $190,000, a first home buyer missed out on a two-bedroom unit in Clayton, in the outer east, which ultimately sold for $492,000.

Listed with a range of $480,000 to $520,000, the home at 2/6 Wright Street, featuring separate living and dining areas and generous bedrooms, had a reserve price of $490,000.

McGrath Clayton lead agent Elroy Malowney said the ambitious bidder “tried an opening bid of $190,000, likely based on a perception that the market has dropped significantly. They did not bid again after that”.

The offer was countered by a second bidder, who offered $460,000, which was again countered by a vendor bid of $490,000, Malowney said. The second bidder, also a first home buyer, purchased the property for a final bid of $492,000.

Malowney said that buyers seemed to have a “skewed perception of market conditions”.

“After recent news reports mentioned a drop in the Melbourne market… many ‘buyers assume they can discount property prices by another 15 to 20 per cent below the quoted range, failing to realise that those price adjustments have already been factored in,” he said.

The property was one of 929 scheduled to go to auction in Melbourne this week.

A young professional woman paid $941,000 for an inner-city Melbourne apartment at auction after first submitting a private offer of $860,000.

The spacious, three-bedroom apartment at 143/283 Spring Street, comes with floor-to-ceiling windows and is only a three-minute walk from Parliament Station.

Ray White Southbank listing agent Tommy-Lee Davies said the auction drew four bidders, including investors and upsizers, all after a centrally located unit.

The property had a price guide of between $850,000 to $900,000 and a reserve of $880,000.

In the end, the contest was between the professional woman, a lawyer, and an overseas investor family, he said.

“The investor kept placing larger bids of up to $9000 raises, while the owner-occupier kept countering with $1000 increments until the investor gave up,” Davies said.

Davies has noticed buyers more confident with lower offers.

“Buyers come in assuming they have all the power and expect bargain prices,” he said.

Davies said Melbourne’s one-bedroom apartment market was doing well, especially among investors, due to offering strong rental yields.

“Otherwise, many campaigns are struggling for buyer numbers. Buyers are cautious, taking their time, and acting as if they are the only buyer in the entire market.”