Frankston market: auctions begin recovery as bidders turn up
A four-decade-old Frankston home has given its owners a huge price gain despite being passed in at auction initially.
Six parties bid on the 39 Pine Hill Drive property but bidding stalled at $840,000.
The agents managed to extract an extra $30,000 from the buyers for an $870,000 result after auction.
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The result gave the owners a price gain of almost $240,000 in just four years, CoreLogic records show.
“It sold for well above the vendor’s reserve and the buyers are a couple from the country relocating here,” Ray White Frankston agent Brooke Wegener said.
“The bidders were mainly young couples and families.”
The 1300sq m property had a $770,000-$840,000 price guide during the auction campaign.
It was one of four properties from five that sold under the hammer that day, to give the Frankston region a solid 80 per cent clearance rate.
CoreLogic data shows the area’s clearance rate has been rising slowly after more than a year of lower volumes and softer prices.
The clearance rate has climbed from an average of 47 per cent in June to 56 per cent in July.
With supply falling by as much as a third between 2018 and this year, auction numbers have also fallen as sellers held back from listing.
“We still think auctions are the best way to sell and with the clearance rate rising, we are starting to see price growth,” Ms Wegener said.
In Langwarrin, four bidders pushed 13 Moate St to fetch $682,000 or $62,000 above reserve.
The three-bedroom house on a block with subdivision potential had a price gain of more than $360,000 in nine years.
“We are seeing buyers come back, including younger buyers and investors who had been sitting on the fence,” Barry Plant Frankston director Thomas Larkin said.
“There is more urgency in the market now and homes are selling above their price guide even in winter which is usually quieter.”
The agency has recorded its best month for sales this July, with 24 transactions, since it opened in Frankston in 2014, Mr Larkin said.
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