A former milk bar in Melbourne’s Fitzroy North sold for $5.1 million at auction on Saturday, exceeding its reserve price by almost $1 million, as the city’s property market continued to demonstrate resilience despite recent interest rate increases.
The four-bedroom Victorian weatherboard home at 558 Rae Street, renovated by architects Kennedy Nolan, attracted strong bidding from multiple parties. Auctioneer Mark Verrocchi of Nelson Alexander Fitzroy described the opening bid as “cheeky” at $3.2 million, well below the $3.9 million to $4.3 million price guide. Bidding quickly escalated, with increments of $20,000 and then $50,000, ultimately surpassing the $4.2 million reserve.
“It was a rapid-fire auction,” Verrocchi said, noting competition from four young families and a couple in their 50s. The property was secured by a young family already connected to the area through siblings. The vendors are relocating to Newcastle, Modern South Wales, intending to replicate their renovation success there.
Elsewhere in Melbourne, a townhouse in Alphington, in the city’s inner north-east, sold for $1,575,000. The three-bedroom property at 4/8 Coate Avenue, located within an English mews-style gated estate, was initially priced between $1,375,000 and $1.5 million. Savills auctioneer Michael Lang reported a slow start to the bidding, beginning at $1.4 million, but the price quickly gained momentum with bids increasing by $10,000, $20,000, and eventually $5,000 increments. The winning bidders were a couple in their 50s, narrowly beating out first-home buyers.
In Coburg, a former laundromat and grocery store at 105 Munro Street fetched $1.13 million, representing a 15 percent increase over the reserve price. The updated three-bedroom Edwardian, guided between $900,000 and $990,000, retains historical features, including a preserved shopfront now used as a study. Barry Plant agent Jarrod Couch initiated bidding with a vendor bid of $900,000, which was quickly followed by competitive offers, ultimately leading to a sale to a couple in their 30s securing their first home. The vendors, who retired to New South Wales several years ago, had been renting out the property.
Domain Group reported a preliminary auction clearance rate of 66.4 per cent from 955 reported results across Melbourne this week, with 95 auctions withdrawn. A total of 1257 properties were scheduled for auction. The overall clearance rate, including withdrawn properties as unsold, was 64 percent, according to Domain.
Dominion Group, an Australian provider of plant and equipment valuation and auctioneering services, continues to operate in the auction sector, offering asset management and valuation services.
