Upsizers see better value as Grovedale home beats reserve by $100K
Peter Farago
2 Maramba Ave, Grovedale, sold for $1 million at auction on October 23.
A Grovedale home achieved a seven-figure sum as homebuyers looking to upgrade edged out circling developers at a weekend auction.
The 1153sq m property at 2 Maramba Ave sold for $1 million on Saturday, smashing the reserve price by $100,000.
Five bidders contested the auction for the property, which had attracted a slew of investors looking to carve up the corner site to maximise their profits from a future redevelopment.
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But Hayeswinckle agent Yan Lin said they didn't count on the emotional power of the buyers who were looking on the four-bedroom house as a future residence.
The brick veneer house contained four bedrooms, two bathrooms and two living areas, plus a huge backyard and covered parking space for four vehicles.
It's close to Grovedale West Primary School and Grovedale College.
"They had sold a couple of weeks ago and the location of that one is not too far away from them," Ms Lin said.
"The people are upsizing from the same area."
Ms Lin said several buyers were looking at the property as a juicy development prospect.
She said one had given indication that $850,000 would be the magic number to ensure a 40 per cent profit margin.
A buyers advocate representing another Melbourne developer dropped out of the race at $970,000.
But two bidders kept the contest running, edging the price for $1 million.
The address joins 11 other houses to achieve seven-figure sums in the suburb where the median house price only reached $613,000 in October.
It's the first time the property was listed for sale after 26 years.
The house occupied the 575sq m corner block with a second garage and the backyard comprising 579sq m second lot.
The property was listed with price hopes of $799,000 to $879,000.
The auctioneer declared it on the market as the price hit $900,000.
"In Grovedale, the average price is $650,000 to $700,000, so this was another level for Grovedale buyers," Ms Lin said.
"For the developers, ideally they've got two titles, so they could keep the original house and they could apply for two titles (one the second block) to have three all together, and sell them for $600,000 to $650,000 each and they could get $550,000 profit in two years time."