St Kilda garage, which could have been an apartment, is being sold at auction for $391,000

“We thought with great interest that it would have been above (the price list), but we didn’t really know how much above,” he said. “It went better than expected.”

Earlier in South Melbourne, a three-bedroom house was sold to a family for $2.2 million after a short and sharp auction.

At the house 22 Henderson Street sat on a block of 191 square meters with two fronts and a side lane.

Sales broker, Peter Zervas of Whitefox, listed the property with a list price of $1.75 million to $1.85 million.

Bidding started at the low end of the range and quickly skyrocketed to $2 million after four bidders entered and bid $50,000. The home sold for $330,000 over reserve.

Zervas said the relatively few properties for sale created an environment that drove up prices at auctions as frustrated buyers fought over what was available.

“It was one where we knew there would be strong bidding and that’s what happened,” he said. “With quality real estate, it doesn’t matter what the market does as long as they have the right bones.”

Buyers were attracted to the home because of its north-facing backyard and relatively large block size, Zervas said.

In Brunswick, a top-floor three-bedroom apartment sold for $1,055,000 – $25,000 over reserve after another quick auction.

Unit 401/10 Dods Street was surrounded by private balconies and had modern and spacious living areas.

Nelson Alexander listing agent and auctioneer Mark Verrocchi said two bidders were vying to buy the home, a slumber and the first home buyer.

Bidding started at $970,000, the bottom of the listed price range, with two bidders battling to take the price to $1.03 million, just below the top of the range at $1.04 million.

The house was sold to the downsizers who were looking for a more manageable house.

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Verrocchi said the sellers’ style made the home easier to sell and that well-presented homes stood out in the undersupplied market.

“It’s grouse, everything just fits in the space,” he said. “There is a lack of quality stock. I really think there is a drastic shortage of real estate.”

Sellers willing to factor in buyers’ reduced borrowing capacity, especially when pricing their homes, would have the most success in the auction market, Verrocchi said.

“If you’re really realistic, you’re often pleasantly surprised because then the whole market is after you,” he said. “I think buyers are frustrated that there aren’t many properties to look at on weekends.

“If they find one, they’ll go in.”

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