Five Preston properties sold at auction on a hot first auction day of autumn — and agents say the market is stabilising.
With five other properties passing in, the suburb’s performance closely mirrored the 56 per cent clearance rate across Melbourne.
Properties that went under the hammer in Preston varied from a three-bedroom Edwardian to a recently renovated townhouse.
Hocking Stuart Preston agent John Pasceri said 1/39 Mt Pleasant Rd received three bidders and 10 bids.
He said the auction was hotly contested and went quickly as the property sold for $780,000.
“I wish all campaigns could go as well as this one did,” Mr Pasceri said.
“All the bidders were looking for their first home, but the buyers fell in love with this one.
“They spread their wings far and wide but were looking at Preston because of its affordability.”
Mr Pasceri said there was plenty of interest from buyers out there.
“Some vendors are holding off and doing their research, but the market is screaming out for quality homes,” Mr Pasceri said.
“There’s lots of buyers, but a real shortage of homes on the market.”
No. 163 Raglan St is a short drive away and saw a competitive contest between four bidders.
Bids started at $1.15 million before the property sold at $1.265 million to a young couple who will move in.
Nelson Alexander agent Spiros Karagiannidis said the four-bedroom house on an 890sq m allotment sold $15,000 above reserve.
“The couple hadn’t been considering Preston, but they were attracted to the solid property with a great backyard,” Mr Karagiannidis said.
“They weren’t able to find something like this in suburbs closer to city and saw great value in this property.”
Mr Karagiannidis said getting a bit more than expected at sale time in this market was a bonus.
“The market is still very consistent,” Mr Karagiannidis said.
“We’re finding properties are selling, but mostly within the range rather than at the top or above.
“It’s really coming down to one or maybe two buyers at the most.”
On the other side of Bell St, the three-bedroom Art Deco at 207 Tyler St sold $65,000 above reserve.
With eight bidders in the race, the property went for $825,000.
Barry Plant agent Jesse Dolcetta said the vendor, who inherited the house, was expecting high $700,000s.
He said the end price was a fantastic result.
“There were first-home buyers and young families interested, but it eventually sold to an investor,” Mr Dolcetta said.
“A slight correction in pricing brought back good buying prospects in purchasers’ eyes.
“A bit of confidence is back.”
Mr Dolcetta did not anticipate the Preston market would soften further.
‘I think the market will stabilise over the next 12 months,” Mr Dolcetta said.
There were 736 auctions reported to the REIV across Melbourne with 413 selling and 323 passing in.