Bargain hunters have flocked to a three-bedroom house within easy reach of the CBD after the vendor decided to slash the price guide, as buyers jump on bargains amid softer market conditions.
Two bidders battled for the 621 square metre St Albans property on Saturday, located just 17km from the Melbourne CBD.
411 homes went to auction in Melbourne last week, with the city's clearance rate reaching 56.2%, marking one of the highest rates out of the capital cities, according to PropTrack.
Auction activity across the country improved slightly, with the national preliminary clearance rate reaching 46.6% out of 1,186 auctions held last week.
The property: The three-bedroom, one-bathroom house at 9 Mcrae Avenue, St Albans sold at auction for $572,000 on Saturday 11 July.
Suburb snapshot: St Albans is located 17 kilometres northwest of the Melbourne CBD.
This St Albans house sold under the hammer for $572,000. Picture: realestate.com.au/sold
St Albans’ median house price has increased 10.7% to $731,500 during the year to June, according to PropTrack, while unit prices have grown 3.4% to $537,500 during the past year.
Selling agent Lam Nguyen of Vicprop – St Albans oversaw the campaign and spoke to realestate.com.au about the result.
What happened during the campaign?
It was in essence a deceased estate. We had originally priced it around $600,000-$650,000, but we only had a minimal number of groups come through initially.
Two bidders competed for the three-bedroom house at its auction. Picture: realestate.com.au/sold
We had a meeting with the sellers, who wanted the property sold, and we revised the price expectations and set the reserve price at $550,000 ahead of the auction, and we then had about six groups come through.
What happened during the auction?
On the day, there were about six buyers and there were two active bidders. One of them just saw it on the day and then one was a builder, and the builder bought it under the hammer.
The auction kicked off at $505,000 and then slowly crept up, with about 18 bids.
What types of buyers did you see during the campaign?
There was a mix of buyers, with aspiring home buyers, builders and developers. Some first-home buyers looked at the amount of work and said it was too much.
The home sat on an 621 square metre block in the northwestern suburb. Picture: realestate.com.au/sold
We had builders and developers asking for contracts, but many of them ended up ghosting us despite follow‑ups. We had about 12 groups through over a four‑week campaign, which is very low.
In this market, first-home buyers in our area generally want move‑in‑ready properties, not something that needs another $100,000 spent on it.
What's happening in your market at the moment?
We’re a boutique office and we’ve noticed supply volumes have dropped a bit during the colder months, but there’s still demand.
For a property like this to only get 12 inspections in four weeks is low, whereas other listings are averaging four to five buyers per open.
The property was marketed to builders, developers, investors, and renovators for its landholding. Picture: realestate.com.au/sold
Online enquiry has fallen and to combat that, we’re running multiple opens per week and focusing on the buyers who actually walk through the door.
It’s definitely a more hands‑on, work‑the‑buyers type of market.
Predictions for the area?
St Albans is still in that affordability bracket. I think stock will be hard to come by over winter as people hold off and get ready for the spring market.
Come spring, there should be an influx of listings and more choice for buyers, but I expect a lot of that to be owner‑occupiers rather than investors selling out.
The home comes with three bedrooms and a central bathroom. Picture: realestate.com.au/sold
We’re seeing a surge in units and townhouses, which suit affordability but generally don’t have the same capital growth as houses on land.
With population growth and ongoing undersupply, I don’t see enough stock coming through to really drag the market down in Victoria.
What's your top tip for sellers?
My top tip is to get an agent who genuinely cares and understands the market, not someone who’s just programmed to list and sell. You want someone who understands the economy, can read the market, and give you honest advice.
The auction wrapped up after about 18 bids. Picture: realestate.com.au/sold
Presentation and targeting the right buyer pool for your property are also crucial. In this market, a hard‑working agent who runs more opens and actively chases buyers can make a real difference to your result.
What's your advice for buyers?
For buyers, the main thing is to have your finance ready and know exactly what terms you can offer. Sellers are obviously focused on price, but strong terms and certainty really matter too.
In this environment, being organised and presenting as a secure buyer can be just as important as the figure you put on the contract.
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