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Moonee Ponds home sells for $1.54 million post auction as rate rises cause jitters

It was the second Saturday in a row with a preliminary clearance rate below 60 per cent, which is a level that broadly correlates with a balanced market. When the rate tracks below 60 per cent, prices are likely to be falling.

One of the biggest results for the long weekend was on the Mornington Peninsula, where a four-bedroom home sold under the hammer for $4.55 million, $1.05 million above the reserve.

Three bidders competed for the property at 69 Bass Street, Flinders, which backs onto the Flinders Golf Course.

The auction opened with a vendor bid at the $3.5 million reserve price, which was followed by strong bidding, said Kay & Burton Flinders selling agent Ruth Williams.

“It was a hotly contested ripper auction with three keen bidders and 120 people in attendance,” Williams said. “The buyer is a keen surfer and will enjoy the property as a weekend holiday house with his family looking out over Mushroom Reef.”

Williams said though buyers were being more cautious at auctions, there were still good results for unique, lifestyle homes along the peninsula, which had helped “insulate” the area during downturns in the past.

Closer to the city, but still on the coast, a three-bedroom 1950s style home at 1/31 Munro Avenue, Edithvale, passed in before selling for $930,000. It had a price guide of $899,000 to $970,000.

Bidding opened at $880,000, with offers stalling at $920,000. The property passed in on a vendor bid of $930,000, which the ultimate buyers, a local family, matched post auction.

O’Brien Real Estate Chelsea selling agent Kimberley Ferguson said more buyers had been holding back as the market changed.

“There are a few people that are wanting to be a little more cautious,” Ferguson said. “But there’s a lot of people that need to buy, they’re about to have a family, or they’ve separated, or they have pre-approval and want to get in while they can.”

Though rising construction costs are deterring many buyers, not all are standing back. A deceased estate in Blackburn North was snapped up by a developer for $1.29 million – $130,000 above the reserve.

Ray White Blackburn auctioneer Allan Smith said six active bidders competed, with the buyer of the four-bedroom house at 67 Koonung Road, planning to tear it down and subdivide the block.

“We are in ‘a correcting market’ and no-one knows what the future holds, but there’s no drastic reductions in price going on,” Smith said.

In Abbotsford, a three-bedroom house which had been an investment property, sold under the hammer for $1.31 million, above the $1.21 million reserve. Two bidders competed for the home at 20 Yarra Street, Abbotsford, with a local family purchasing the home.

Bidding opened on a vendor bid of $1 million, as buyers kept their cards close to their chest, but a follow-up $50,000 offer then sparked competition.

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Jellis Craig Richmond selling agent Luke Schickerling said the auction was “really good” despite what was happening in the market.

“If people want to buy, they’ll buy, especially while money is still available,” Schickerling said.

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