Young couple looking for their ‘forever home’ win $2.35m Fitzroy auction

A double-fronted Victorian home in Fitzroy sold under the hammer for $2.35 million on Saturday to a young couple after a rapid-fire auction.

The four-bedroom property at 298 George Street had been listed with an auction price guide of $2.1 million to $2.3 million. The reserve was set at $2.3 million.

Tucked between Smith and Brunswick Streets on 275 square metres, the auction drew three bidders. Bidding opened with an offer of $1.95 million.

David Sanguinedo, from Jellis Craig Northcote, said the bidding escalated in big increments as buyers tried to freeze each other out.

“It went up in $100,000 bids and then it went into the 50s. It went back and forth between three bidders quite quickly… It wasn’t even 5s or 10s. They were playing mind games.”

The three bidders included a local wanting to put their own touch on the home, the underbidder who is a buyer from the coast looking for a “town base” to enjoy the nightlife and wine bars, and the successful buyers: a local young couple looking to build and live in their “forever home”.

The emotional sale marked the end of a 27-year chapter for the vendor.

The property was one of 881 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 52 per cent from 598 reported results throughout the week, while 115 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

Mr Sanguinedo rejected broader economic commentary about a slowing market, stating that premium inner-north pockets operate differently.

“Fitzroy has its own climate… Our market always stays buoyant, and we are consistently seeing competitive bidding at auctions, and things are selling. There’s always going to be a demand for inner-city properties.”

Elsewhere, a period home in a tightly held Northcote pocket sold under the hammer for $2.02 million.

The single-level, four-bedroom property at 1 Johnson Street had been listed with a price guide of $1.85 million to $2 million. The reserve was set at $2 million.

Bidding opened with a vendor bid of $1.8 million, then three groups fought it out to the end.

The back-and-forth dynamic between a couple, a young family, and an older couple was over swiftly, with the younger couple, in their 40s, securing the keys.

Nelson Alexander partner Monique Verga said the location represented a premium residential “sweet spot.”

“There’s not a huge number of homes that come up between High Street and the train line… You’re not right up against the train line and then you’re not backing onto the commercially-zoned property, so it’s a really nice residential street,” she said.

“This corridor tends to do quite well. High Street, you have everything, whether it’s Psarakos, a traditional Greek supermarket, or you’ve got live music, bands, this one’s just behind the Croxton.”

The kitchen and bathroom zones are dated, which influenced the bidding limits.

“Most people were factoring in upgrading it at some point, but it was really, really neat and tidy. … Most buyers were telling us they were seeing value at the $2,000,000 mark rather than beyond. … People were factoring in renos.”

The vendors chose to sell after upgrading to a larger home closer to their children’s school.

Verga said a lack of listing stock continues to protect property values.

“We always find that the inner-north is pretty shielded because anytime there is a decline, we just get vendors that hold, so the stock levels dry out, which means it protects the prices.”

In Brighton East, an Art Deco home sold for $1,865,000 in post-auction negotiations.

The three-bedroom property at 11 Weber Street had a price guide of $1.8 million to $1.85 million. The agent would not disclose the reserve price.

The property drew two bidders, who were both young families, though bidding was conservative.

An opening bid from the crowd of $1.8 million was answered by a single $50,000 increment before the property was passed in at $1.85 million to negotiate and eventually sell it to the second bidder.

Buxton Hampton East auctioneer Noel Susay said the demographic of bidders came from “young families” looking to secure a home in the local school zones, with buyers “upsizing from local areas like Caulfield and Caulfield South.”

“The owners of the property have been there for 30 years, and have maintained it really well. It has really fantastic period features, and the condition of home, the location, and the schools [drew buyers in].”

Mr Susay said he has noticed a softening market.

“There’s a lot more passing in and negotiating with buyers, so they’re really waiting to see what other people are doing. It feels like everyone is sitting on their hands at the moment.”

PRD chief economist Dr Diaswati Mardiasmo said a steady cash rate and confusion over upcoming tax changes have flattened market momentum.

“The market is just holding stable right now. There isn’t a lot of movement,” Dr Mardiasmo said.

She explained that interest rate pauses make buyers feel less rushed, creating a gap for entry-level buyers.

“We are seeing a lot more first home buyers entering the market… trying to get something at auctions because they know that the investors are being a little bit unsure.”

First-home buyers are also racing to lock in properties now before potential rate hikes arrive later down the track.

“Westpac is still predicting that there might be two more cash rate hikes before the end of 2026,” Dr Mardiasmo said.