A run-down Hughesdale house sold for $1.201 million to buyers who plan to knock it down and rebuild.Buyers have already been factoring this week’s interest rate rise into their plans.Bargain-hunting tactics proved fruitless at the auction of a West Melbourne warehouse conversion on Saturday, as interest rate rises weighed on home buyers’ minds across the city., the two-bedroom apartment sold under the hammer for $930,000, within its advertised price range.
But three bidders then fought it out in a fast-paced auction until the hammer fell at $930,000 to an owner-occupier, said selling agent Rhiannon East, of Harcourts Melbourne City. Four bidders competed for 24 Hotham Street, all of whom were hoping to demolish the ageing house, said Ray White Carnegie selling agent Tom Grieve.
For example, a buyer who had a specific budget might now be looking at properties in the next-cheapest price bracket, he said. He was in talks with the bidder and expressed hope the home would sell soon, adding the vendors had set a $950,000 reserve but were open to talks.“We are seeing, certainly, a softening – there is a softening in buyer expectations and participation,” Dines said.
“A buyer that has had their finance approved, and deeply into the selling process, is not going to stop buying.”
When banks start foreclosing on mortgagees and putting those properties on the market, they'll take anything they can get - those cheeky bids will win and reset market pricing expectations