Four Geelong auctions that show why the market’s bouncing back in time for spring
FOUR auctions in Geelong’s inner east provided plenty of evidence to suggest the property market is back before spring.
The homes attracted close to 30 bidders and combined sold above reserve by more than $320,000.
Their combined value from weekend sales was more than $2.9 million.
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The most outstanding result was at 7 St Albans Rd, East Geelong, where a Melbourne buyer beat four others to the renovated bungalow, pushing the price $175,000 above the reserve.
McGrath, Geelong auctioneer David Cortous was stunned by the $975,000 price for the three-bedroom house.
Bidding started at $720,000 and the reserve was set at $800,000 for the weatherboard home.
Selling agent Ross Bywater said buyers were a young couple who intended on making it home.
“They could all see the quality in the home, the great location and that there’s a serious shortage of family homes that are renovated or unrenovated,” Mr Bywater said.
Meanwhile, about 120 people watched as 11 bidders raised a hand for a renovated cottage at 190 Swanston St, South Geelong.
The house was near Little Creatures brewery, but it’s the walking distance to South Geelong train station, the hospital and CBD that stood out for buyers, mostly young professionals.
But Buxton, East Geelong agent Jarrod Leonard said an investor emerged with the keys, paying $710,000 for the property — $90,000 over the reserve price.
Six bidders had a hand up when the $620,000 reserve was reached, and 10 when the price hit $680,000.
“We had over 100 people through in three weeks, which was incredible, but we didn’t expect anywhere near that level of bidding,” Mr Leonard said.
“They’re lifestyle properties — people want them because they’re really well done and the ability to spend the weekend away and not worry about it.
“The same with the investor — it’s just a set and forget property. He’s not worrying about what the lawns are doing in the back. We rented it out to hospital workers previously — he gets good capital growth, a good rental return.”
Two more auctions in Swanston St and Bellerine St attracted five and seven bidders respectively (and selling for $532,000 and $701,500), underlining how many buyers are looking at inner eastern Geelong.
Buxton agent Ben Riddle said the bottom of the market had been and gone, but spring probably wouldn’t bring a flood of properties to market.
“We know the market is back on the move. There has been a number of auctions by a number of real estate companies today that suggests that the market is going to be back in full swing and there is still a remarkable opportunity time to buy before that gets into the full gear comes spring,” Mr Riddle said.
“The reality is with the cash rate now at 3.5 per cent I don’t think there is going to be a lot of landlords who will have the desire to release their properties now that the share market and the cash rate are the poor options at the moment.”