Melbourne agents are already testing Victoria’s looming reserve disclosure rules, which become compulsory for auctions and fixed-date sales from October 16.
Melbourne buyers have pushed a home $101,000 beyond its published reserve in an early test of Victoria’s looming auction rules.
Five active bidders fought for the Gladstone Park house despite knowing the seller’s $700,000 bottom line, eventually driving the price to $801,000.
Across Melbourne, preliminary results showed a 53.1 per cent clearance rate from 371 reported results, with 197 properties sold, 55 passed in and 119 withdrawn.
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Most of Victoria’s new property price transparency laws started on October 1, but compulsory reserve disclosure applies to auctions and fixed-date sales held from October 16.
For those sales, the reserve must be published at least seven days beforehand as a single dollar figure, with advertising and marketing updated to show it.
The $700,000 reserve at 25 The Circuit, Gladstone Park, was therefore published voluntarily ahead of the compulsory change.
About 50 people braved the rain for the auction after about 70 groups inspected the home during its campaign.
Bidding opened at $680,000 before five active bidders pushed the price through the reserve and eventually to $801,000.
Celebrations after 25 The Circuit, Gladstone Park, sold for $801,000 – $101,000 above its voluntarily published $700,000 reserve.
Ray White Gladstone Park lead agent and auctioneer Phillip Mercieca said buyers had welcomed knowing the figure beforehand.
“The transparency was great,” Mr Mercieca said.
“Even if you disclose your reserve, it doesn’t necessarily mean you’re selling it less or it stops at a reserve.”
Mr Mercieca said the result came in what was “certainly a challenging market”, but buyer demand remained for well-presented homes.
Ray White Gladstone Park lead agent and auctioneer Phillip Mercieca said buyers welcomed knowing the seller’s reserve before auction day.
Other auctions followed by the Herald Sun where reserves were not published also attracted competition.
About 80 people stood in the rain at 16 Eucalypt Ave, Malvern East, where a three-bedroom townhouse sold under the hammer for $1.261m.
The property had been advertised at $1.1m-$1.2m, putting the result $61,000 above the top of its price guide.
Three buyers registered and two competed after bidding opened at $1.1m.
It was declared on the market at $1.18m before the two remaining bidders traded repeated $500 rises until the hammer fell.
The buyer, a flight attendant who had been renting in neighbouring Glen Iris, secured the property from sellers moving to rural Victoria.
16 Eucalypt Ave, Malvern East, sold for $1.261m – $61,000 above the top of its guide after two buyers traded repeated $500 bids.
At 42 Ellis Park Ave, Mulgrave, a young couple buying their first home paid $835,000 after beating three other active bidders.
Seven buyers registered for the three-bedroom townhouse and all were locals.
The home had been advertised at $750,000-$800,000.
Bidding opened at $760,000 before the property was declared on the market at $810,000 and climbed another $25,000.
At 48 Stamford Crescent, Rowville, a three-bedroom home without a published reserve sold for $850,000, exactly at the top of its $780,000-$850,000 advertised range.
Two buyers registered and one bid.
The properties were not a like-for-like comparison, with different suburbs, price points and buyer pools, meaning the results cannot show reserve disclosure caused stronger prices.
Ray White Ferntree Gully agent Sam Sassoon said his office had taken six properties to auction with published reserves, with all six selling.
But Ray White Ferntree Gully agent Sam Sassoon said his office’s early experience had been positive.
Mr Sassoon said six properties handled by his office had so far gone to auction with advertised reserves and all six sold.
“It’s a blessing,” Mr Sassoon said of the additional transparency.
Real Estate Institute of Victoria chief executive Toby Balazs said several months of results would be needed to judge the impact of the new reserve rules.
Real Estate Institute of Victoria chief executive Toby Balazs said the industry supported the principle of greater transparency but remained concerned about requiring sellers to nominate one exact reserve seven days out.
“We 100 per cent support price transparency, but we don’t believe this is the right way,” Mr Balazs said.
He said “a number of months worth of data” would be needed before any consistent impact on clearance rates or seller behaviour became clear.
1. Cate Bakos Property’s Christopher Sybenga, pictured with Cate Bakos, said public auction bidding gave buyers greater visibility over their competition.
Cate Bakos Property’s Christopher Sybenga said auctions gave buyers greater visibility over their competition because bids were made publicly.
He said that visibility reduced once a property passed in and negotiations moved behind closed doors.
“I like auctions. There’s great connections, great interaction, and a lot of energy,” Mr Sybenga said.
TOP FIVE REPORTED SALES
1. $2.27m — 18 Belle Vue Rd, Balwyn North
18 Belle Vue Rd, Balwyn North, topped Melbourne’s reported weekend auction sales after changing hands for $2.27m.
2. $2.21m — 11 Wright St, Essendon
11 Wright St, Essendon, recorded the weekend’s second-highest reported auction result at $2.21m.
3. $1.9m — 27 Meredith Ave, Templestowe
27 Meredith Ave, Templestowe, was among Melbourne’s biggest reported auction sales, fetching $1.9m.
4. $1.72m — 10 Robina Rd, Eaglemont
10 Robina Rd, Eaglemont, sold for $1.72m to rank among Melbourne’s five biggest reported weekend results.
5. $1.589m — 48 Ian Grove, Mount Waverley
48 Ian Grove, Mount Waverley, rounded out the top five reported auction sales with a $1.589m result.
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