Key points

• A three-bedroom house in Northcote sold under the hammer for $1.625 million after five bidders competed.
• A fixer upper in Frankston North also sold for $534,000 to a couple who were investors.
• Agents say buyers are overcoming their interest rate rise shock and Melbourne’s market is returning to normal after two years of disruptions from COVID-19.

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A mother bid $1.625 million on behalf of her first homebuyer son for a stylish three-bedroom Northcote house on Saturday, in an auction that was over after just 12 bids.

The renovated residence with an extended outdoor entertaining area attracted four bidders, undeterred by the shock of the latest interest rate rise.

Ray White Oakleigh auctioneer Robert Cincotta takes bids during the Northcote auction.Credit:Simon Schluter

The Edwardian-style home at 135 Separation Street was one of 839 auctions scheduled in Melbourne on Saturday.

Ray White Oakleigh auctioneer Robert Cincotta asked for an opening bid but the crowd remained quiet until an online bidder opened proceedings with a $1.42 million offer.

Three other bidders then made counter offers of $10,000, $8000 and even $2000, until bidding reached $1.62 million, then a final $5000 bid sealed the deal.

The sought-after home sold above the price guide of $1.4 million to $1.54 million, to the mother bidding on behalf of her son.

Agents talk with potential buyers during the auction.Credit:Simon Schluter

Ray White Oakleigh senior selling agent Leigh Kelepouris, who handled the Northcote sale as the vendor was known to the agents, said it appeared buyers had overcome the initial shock of the last interest rate rise of 0.5 per cent, and were more comfortable to bid.

“When you’re increasing rates from next-to-nothing, any rise is going to be a shock,” Kelepouris said. “There’s now a bit of confidence around.”

A four-bedroom house at 177 Maribyrnong Road, Ascot Vale sold under the hammer to a downsizer, who made a final $5000 bid.

They beat three young families in an auction that began with a bid of $1.175 million – the bottom of the price guide of $1.175 million to $1.275 million.

Bidding quickly reached $1.29 million, and it sold for $1.295 million.

Nelson Alexander Flemington partner and auctioneer Jayson Watts said buyers were overcoming the interest rate rise shock, with Melbourne’s market returning to normal, after being disrupted by COVID-19 lockdowns in 2020 and 2021.

“Melbourne seems to be returning overall to a normal market with stock levels lower in July. People are taking a chance to get out of Victoria to Europe, Bali or America during the school holidays for the first time in two years,” Watts said.

A three-bedroom fixer upper in Frankston North sold under the hammer to investors for $534,000, in the middle of the $489,000 to $587,000 price guide.

They were one of three bidders at the auction, at 9 Candlebark Crescent, while others in the crowd were first homebuyers.

OBrien Real Estate Frankston selling agent Mark Burke said there was a crowd of almost 60 people at the property, despite it needing some major work.

“It was in pretty poor condition,” Burke said.

The buyers, a young couple, were adding to their property portfolio and planned to fix up the property and rent it out, he said.

Closer to the city, in Malvern, a four-bedroom house at 123 Stanhope Street, that was once two apartments, passed in on a bid of $3.125 million to a lone bidder.

They made the offer after an opening vendor’s bid of $3.1 million. The house was put up for private sale with an asking price of $3.485 million on Saturday afternoon, as agents negotiated with the bidder.

Marshall White Stonnington director and auctioneer Justin Long said agents hoped the long-held family home would sell after the negotiation.

In Aspendale, a couple who bought their home in 2020 during the initial lockdowns sold it under the hammer for $1.501 million. Records show they paid $1.12 million two years ago.

The three-bedroom home at 21 Mount View Street drew five bidders. A local family, who lived just a few streets away, won.

Ray White Carnegie selling agent Jin Ling said the couple had planned to extend the mid-century style home, but extra costs for building materials, and a new baby, made them change their minds.

Bidding on the property opened at $1.2 million – above the low end of the price range of $1.19 million to $1.29 million.

“Aspendale is really popular, especially with local buyers. Through this campaign, we had more than 100 groups attend the open for inspections and around 90 per cent of them were locals,” he said.

He said despite the news of the downturn, buyers were still in the market for the right properties.

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