Updated Californian bungalow in Northcote sells for $3.4m after “knockout” bid

An updated Californian bungalow in Northcote sold for $3.4 million on Saturday, after a “knockout” $49,000 final bid.

With its classic 1920s front restored in 2011, 83 Mitchell Street has been updated over the past 15 years to incorporate the Baltic timber and exposed bricks of the original house into a contemporary, open plan home. It features a sprawling sitting and dining area, with a wall of north-facing windows looking onto the rear garden and deck, with a brick barbecue, pizza oven and outdoor fireplace.

The property was one of 768 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain recorded a preliminary auction clearance rate of 63 per cent from 533 reported results throughout the week, while 68 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The preliminary clearance rate is likely to be revised lower as more results are collected, but this weekend marks the first time it has ticked higher than 60 per cent – the threshold generally considered an indicator of rising prices – since before the May budget.

Jellis Craig Northcote agent and auctioneer Sam Rigopoulous said bidding for the four-bedroom house at 83 Mitchell Street opened at $3.1 million, $100,000 below the bottom of its $3.2 million to $3.4 million guide.

It didn’t stay there long, as four active bidders quickly pushed the price well above its $3.25 million reserve in $50,000 and $25,000 increments before bidding slowed.

“A $1000 bid almost bought the home,” Rigopoulous said, with the penultimate bid sitting at $3,351,000 before a shock turn.

The underbidder was blown away when the winning buyers, a young family upsizing from Fitzroy North, delivered what the auctioneer called a “knockout” $49,000 final bid to buy the home.

Rigopoulous said he was “starting to see glimmers of heat in some auctions” recently, with vendors setting realistic reserves which was leading to competitive bidding.

In Albert Park, a four-bedroom, two-storey terrace on prestigious St Vincent Place failed to sell at auction, passing in on a sole vendor bid of $7.7 million.

Built around 1880, 50 St Vincent Place North looks onto St Vincent Gardens, with a second frontage onto Draper Street at the rear, and has been updated to incorporate an al fresco terrace, modern kitchen and bathrooms, while retaining the heritage front and high ceilings of the earlier era.

The property was advertised with a price guide of $7.5 million to $8 million, and had an $8,095,000 reserve. There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

Marshall White Port Phillip agent and auctioneer Greg Hocking said he opened the auction with a vendor bid of $7.7 million. With no further bids, despite three interested parties, the property passed in on the sole bid.

“It’s a curious one, because the top end has been producing some extraordinarily strong results,” he said, adding he thought this sale would ultimately “be one of them” and expected it to sell within the week.