Aussie auctions push demand

Low auction numbers in Melbourne, Australia, concentrated demand and produced some high prices of late, with competition between investors and first home buyers pushing apartment prices above many reserves...

Agents also reported some interest from developers that they said was a sign of increasing confidence in an economic recovery.

Overall, 76 per cent of the 439 properties auctioned sold, but auction numbers were almost a third down on the same weekend last year.

Hocking Stuart's Marshall Rushford said three developers bid on a 1027-square-metre redevelopment site at 27 Oswald Street, Elsternwick, Melbourne, that sold for £584,000.

"They're planning for 12 months ahead; they know that whatever they're buying today won't be sold for 18 months to two years," Mr Rushford said.

He said the apartment market was also strong.

It was a similar story in Kew where Noel Jones sold a three-bedroom apartment at 4/107 Walpole Street for £251,000 after competition from six bidders.

In Elsternwick and St Kilda East, Biggin and Scott had strong results with family homes.

A three-bedroom, one-bathroom brick house at 12 Regent Street, Elsternwick, attracted two buyers from Port Melbourne who competed fiercely and pushed the price to £867,000. Agent Bill Stavrakis said the house had sold in October 2005 for £665,000 and nothing had been done to it since.

In the western suburbs, Jas H Stephens' Craig Stephens reported continuing strong interest from first home buyers. Mr Stephens said any properties priced below £202,000 were selling quickly.

Source: www.theage.com.au