Renovation masterclass drives $1,605,000 gross profit at auction

A meticulously renovated Victorian in one of Richmond's most coveted pockets delivered a strong auction result in inner Melbourne, with Jellis Craig agent Elliot Gill describing 45 Murphy Street as "an amazing renovation that catered perfectly to demand."

A modest crowd gathered to watch what ultimately became a two-bidder contest. Bidding opened at $2 million and, after a slow takeoff, began to climb steadily.

The home eventually sold for $2.450 million, exceeding the $2.175 million reserve, with the keys going to a young family who had just sold in Fitzroy.

"Ironically, the vendors and buyers both hailed from the same village in the UK," Gill noted. "It was quite funny."

The renovation, featuring 3-metre ceilings, a courtyard, an open stair void and a stone-topped kitchen with Electrolux appliances, proved a major drawcard.

"The market above $2 million is really strong for homes that are renovated," Gill said. "People will pay a premium when the hard work is done."

The house last sold for $845,000 in 2011 pre renovation according to records and had been held by the same family for fifteen years, giving the owners a $1,605,000 gross profit.

But he said the broader market has been far less predictable. "With the general market, pricing is all over the place," he noted. "You just can't pick it. It's feast or famine with not a lot in between."

Gill said investor behaviour is also shifting in noticeable ways. "I'm not seeing many Victorian investors, but when I do, they seem to be selling, not buying."

For 45 Murphy Street, however, the combination of a high-end renovation, flexible floor plan and prime position behind Bridge Road's buzz ensured unapologetically competitive bidding, reinforcing that top-tier, move-in-ready homes remain in hot demand.

Melbourne hosted 1,682 auctions this week, according to Cotality, up 24.1 percent on last week's volume and the highest number of auctions since the last week of October, ahead of the Melbourne Cup Racing Carnival (1,836). 68.6 percent of Melbourne auctions have delivered a successful result so far, down 1.2 percentage points on the week prior and the lowest preliminary clearance rate since the week ending 2 November.

Raw potential yields premium result for long-held terrace

Offered at auction for the first time in more than 45 years, a Newtown terrace at 82 Gowrie Street presented a rare opportunity in Sydney's inner west. R & W agent Michael Xanthoudakis said the property gave buyers a glimpse of a long-standing slice of local history.

The auction drew five registered bidders, with an opening ante of $1.7 million, rising in steady $10k strides until one keen investor forced the hammer to fall at $1.85 million. "He saw huge potential in the property," said Xanthoudakis.

The result highlighted a trend that Xanthoudakis is seeing in the market. "High demand and a heated market is driving prices up," he noted.

"Just two weeks ago, a nearby home that was fully renovated sold for $1.8 million. This house is unrenovated and got the same price."

He added that buyer urgency is shaping much of the landscape. "People are wanting to get on board so they don't miss out," he said, reflecting the strong intent from investors and homebuyers alike.

"The market will go up and up in the new year. I can't see it slowing, unless rates go up."

Set on approximately 111sqm, the two-bedroom, two-storey terrace offers a basic but liveable layout, including a separate lounge and dining area, functional kitchen and bathroom and a sunny private yard. The property invites extension or full renovation subject to council approval. Its location, roughly 600m to the rail and a short walk to Erskineville Village, adds to its appeal.

Xanthoudakis surmised, "Even in its current condition, the property captured attention because of the potential and the location. Buyers recognise opportunities like this are rare."

Cotality reports 1,263 homes auctioned in Sydney this week, a 10.8 percent rise on last week's volume and the highest number of auctions held since the week prior to Easter earlier this year. 65.2 percent of Sydney homes have reported a sold result, down 3.3 percentage points from last week and the lowest preliminary clearance rate since the week ending 8 June earlier this year.

Competitive Melbourne market forces buyers to stay local

A large crowd of 60 gathered to watch four active bidders go head-to-head at 1126 Ligar Street, Ballarat North. Ray White agent Mark Williams said the mix of bidders included first home buyers and investors, reflecting strong local demand.

"The home's appeal was clear. Attraction to buyers was the price point and the big block. It's good value, and buyers know what they're getting," Williams explained. The 793m allotment, three-bedroom layout and a 9.6m x 5.8m shed made it an obvious target for buyers.

The auction opened at $550K, followed by $10k jolts that slowed to $1k offers at $615k, ultimately selling to a first home buyer from Ballarat for $622,000, surpassing the price guide of $550,000-$595,000. "It was a cracking result," Williams said.

"The successful local buyers had previously been trying to enter the Melbourne market but were pushed out due to rising prices, so they were ecstatic with the win."

Williams also pointed to the broader market confidence. "The 5 percent deposit scheme is certainly increasing confidence in first home buyers," he said.

"2026 will continue in the right direction for the Ballarat market. There are still plenty of buyers wanting to buy and plenty of sellers willing to sell."

He added that the combination of location, block size, and strong pricing made the property a standout. "When homes like this come up, people know the value and they respond," Williams said.