The construction costs of a $400,000 house have jumped at least $76,000 since 2021, construction industry experts say.
“I really think some people are scared of the current construction costs,” Butler said.
The repairer, which was being sold as part of a deceased estate, will now be offered for private sale.
Not too far from Brunswick, in Collingwood, a unique warehouse sold under the hammer for $1.845 million, above the $1.45 million reserve after six bidders battled it out.
The three-bedroom, two-storey property, at 75 Little Oxford Street was zoned both commercial and residential and sold to a buyer looking to make it a studio as well as a home.
Jellis Craig Inner North partner and auctioneer Michael Amarant said the seller had owned the property since the late 1990s, making it a unique home with an “alternative 90s Collingwood vibe”.
Amarant said it was surprised at the result, but the property was so unique it was difficult to put an exact price.
“Nowadays everyone wants a warehouse hull to work, but it really had to be done in the 1990s,” he said. “It was an opportunity to start over.”
The auction market turned out to be a “feast and famine”, Amarant said, with sought-after properties selling well despite needing work, while others struggled to find buyers.
A pretty three-bedroom Victorian terrace at 106 Charles Street, Fitzroy, which needed updating, has found a buyer, after initially bidding for $1.31 million.
It was sold after a short negotiation for $1.35 million to a man with two teenage sons and they plan to renovate it themselves.
Monique Depierre, senior sales consultant at Kay & Burton, said shoppers were reluctant to raise their hands, looking sideways.
“Although the auction drew a reasonable crowd, there were a few people who didn’t raise their hands, resulting in the seller’s opening bid of $1.3 million,” Depierre said. .
The house had belonged to the sellers for 41 years. Depierre said it was their family home after their first marriage, before it was rented out.
Across town in Frankston, a house that needed no work went under the hammer for $1.255 million after three bidders – all young couples – clashed.
The two-storey house in 15 Tara Drive sold above expectations after the auction opened with a bid of $1.15 million – the high end of the advertised price range.
Ray White Frankston’s associate partner Brooke Wegener said buyers, from nearby Langwarrin, plan to take the four-bedroom home. Like other bidders, they were looking for a new home after selling.
“For this particular property, all of the bidders had already sold and needed to buy, so there was added pressure on them,” Wegener said.
Closer to town, a two-bedroom house in 47A Henry Street, Prahran, sold under the hammer for $1.301 million, in the middle of its $1.25-1.35 million price range.
Jellis manager and auctioneer Craig Stonnington, Nathan Waterson, said two bidders competed and one downsizer won. They had started bidding at $1.25 million.
Waterson said there were shoppers on the go, with more listings giving them more choice.
“I don’t think buyers are holding back at the moment, they are more discerning in their choices.”
A family seeking refuge in the city has snapped up a stylish two-story apartment in 332/57 Spencer Street, Docklands, for $1.15 million.
The three-bedroom property at The Grand resort also sold midway through its price expectations of $1.1 million to $1.2 million.
Jellis Craig Port Phillip sales manager Pil Minerth said two bidders – the two families looking for a bolthole in Melbourne – were in competition.
The winners wanted an urban base where their children could attend university without needing a long commute, and where they could settle, while the underbidders were from Sydney.
Minerth said while apartments weren’t as popular as houses during the worst of the coronavirus pandemic, they were finding buyers again.
“Most of the apartments are selling, I sold a few last week in Southbank and Middle Park, lots of people are looking for city pads,” she said.
As interest rates force some shoppers to pause, the end of Victorian Government stamp duty exemptions at the end of June could affect the city center market as the scheme provides an exemption for brand new properties for sale for over 12 years. months after construction.
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