Home sales soar

Credit: Norrie Ross Herald Sun

THE last big weekend for auctions in Melbourne before winter fell just short of the billion-dollar record of a few weeks ago.

But vendors and real estate agents were again popping champagne corks as 1009 auctions produced a healthy 84 per cent clearance rate, with some homes producing spectacular results.

A modest weatherboard home on a 630 sqm corner allotment in Breese St, Brunswick, sold for $1,797,000, $747,000 above the reserve. The auction was driven by competing developers.

There were also 591 private sales and the total value of properties sold according to the Real Estate Institute of Victoria was $934 million.

Among the properties that went to auction yesterday was a small three-bedroom home in Bristol Ave, Edithvale, put up for sale by America's Cup winner John Bertrand and his brother Lex.

The unrenovated, rendered home went under the hammer for $1.9 million, $100,000 more than the reserve. John Bertrand said the house had been in the family for more than 60 years and had been rented for the past couple of years.

"My brother Lex and I are very happy with the outcome. We're also happy it's gone to a lovely local family." he said.

The house showed the value of "position, position, position" with 43m of prime beach frontage.

The Bertrand brothers grew up in the house and John said Port Phillip Bay was their back yard.

"We'd kick a footy around and then get the boat out of the boatshed. It's 50m from the house," he said.

The buyers intend to knock over the original house and build their dream home.

Ross Savas of agents Kay and Burton said he believed homes close to water in Melbourne were still under- valued, compared with Sydney and overseas.

"It's a strong result in a good market. It's all about the water," Mr Savas said. "You step out of your front door and your feet touch the sand."

Mr Savas said the upper end of an already buoyant market was being boosted by a number of ex-pat Australians returning home because of the fallout from the global financial crisis.

"There has been a flood of ex-pats. They've lost their jobs and they've obviously held senior positions and they've come back and find Melbourne property is still affordable," he said.

REIV spokesman Robert Larocca said there was no discernible trend in the weekend results, or in the fact the total sales result did not break $1 billion.