A first-home buyer who opened an auction with a $190,000 bid missed out on a two-bedroom unit in Clayton, Melbourne’s outer east, after the property sold for $492,000.
The home in Wright Street was listed with a price guide of $480,000 to $520,000 and had a reserve of $490,000. It featured separate living and dining areas and generously sized bedrooms.
Elroy Malowney, lead agent at McGrath Clayton, said the buyer did not bid again after making the opening offer, which he believed reflected a mistaken view of the market.
“They tried an opening bid of $190,000, likely based on a perception that the market has dropped significantly. They did not bid again after that,” Mr Malowney said.
The bid was challenged by another first-home buyer, who offered $460,000. A vendor bid of $490,000 followed, before the second bidder secured the property with a final offer of $492,000.
Mr Malowney said some buyers appeared to have a “skewed perception of market conditions” after reports of a decline in Melbourne property prices.
“After recent news reports mentioned a drop in the Melbourne market… many ‘buyers assume they can discount property prices by another 15 to 20 per cent below the quoted range, failing to realise that those price adjustments have already been factored in,” he said.
The Clayton sale came during a week in which 929 Melbourne properties were scheduled to go to auction.
At another auction, a young professional woman paid $941,000 for a three-bedroom apartment in inner Melbourne, having previously made a private offer of $860,000.
The Spring Street apartment, near Parliament Station, attracted four bidders, including investors and upsizers. It had been advertised with a guide of $850,000 to $900,000 and carried a reserve of $880,000.
Tommy-Lee Davies, a listing agent with Ray White Southbank, said the final contest was between the lawyer and an overseas investor family. The investor made increases of up to $9,000, while the owner-occupier responded with $1,000 rises until the investor withdrew.
Mr Davies said buyers were increasingly confident about making lower offers, while Melbourne’s one-bedroom apartment market was performing well among investors because of its rental yields. Other campaigns, he said, were attracting fewer buyers as cautious purchasers took their time and behaved as though they were the only bidder in the market.
