What is happening in the eastern suburbs?

May 25, 2015
Katrina Mullen

Melbourne's outer east is in "boom-time" mode with nine out of 10 properties selling under the hammer on most weekends.

With 773 auctions reported to the Domain Group by Saturday night, the clearance rate clocked in at a year-high of 83.3 per cent.

The outer east once again outperformed with a clearance rate of more than 90 per cent. 

The two-bedroom house at 20 Nicholas Street, Ashburton, sold for $1.52 million, $220,000 over reserve.

The two-bedroom house at 20 Nicholas Street, Ashburton, sold for $1.52 million, $220,000 over reserve. Photo: Supplied

Among the properties tumbling reserves on Saturday was a circa 1951 two-bedroom house in Ashburton, with a permit to build two new townhouses. 

Seven bidders were in contest for the single-level residence at 20 Nicholas Street after an initial vendor bid of $1.1 million by Marshall White auctioneer Doug McLauchlan to break the morning ice. 

It was eventually knocked down for $1.52 million, $220,000 over reserve, to an investor who plans to lease out the property before he decides what he wants to build on the site. 

Mr McLauchlan said Ashburton, which had long been the forgotten corner of Boroondara, was now being discovered. 

"It neighbours Glen Iris and Malvern East, it was obvious that this area was going to take off at some point," he said.

"It's finally happened and the locals are benefiting from it."

Domain Group senior economist Andrew Wilson said the pocket of Ashburton, where 20 Nicholas Street was nestled, was the next part of the suburb to gentrify and record price growth. 

"I think that's the last of the good buying areas in Ashburton and I don't think it'll last very long," he said.

"More often than not the outer east is the leader in clearance rates every weekend, and it's certainly typical for the clearance rate in the outer east to be above 90 per cent.

"And that's certainly a boom-time environment where you're getting nine out of 10 properties consistently sold on a weekend under the hammer in one area."

Further east, in Glen Waverley, an executor's auction of a three-bedroom house at 11 South Down Avenue, on about 695 square metres, set a new price-per-square-metre record for the suburb. 

Harcourts Judd White, Glen Waverley, director Dexter Prack said it sold for $2.57 million, which worked out to be about $3700 a square metre. The previous record was about $3200 a square metre. 

A crowd of 120 watched five bidders compete for the property in the sought-after Glen Waverley Secondary College zone. 

It also sold to an investor who plans to knock down the residence and build a new home down the track. 

Reserves were also obliterated in the inner east, including the auction of a three-bedroom house in the prized Balwyn High School zone. 

Hocking Stuart Balwyn director Maurice DiMarzio said the knockdown on about 933 square metres at 82 Maud Street, Balwyn North, sold for $3,083,000 - $883,000 over reserve. 

Posted in: Property market

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