I was advising one of my private clients on a Melbourne auction today. All indications based on recent comparables suggested he could be the successful buyer for circa $1.4 to $1.5 million max (indeed, the reserve was later revealed to be $1.45). In any case, I started the bidding with a reasonable entry bid of $1.1, which the auctioneer accepted. But from that point on the bidding was frantic (multiple bidders) with the successful bidder (not mine) securing the property for a touch under $2 million - circa 25% above the reserve.
Granted it was just a one-off example, but it demonstrated the ongoing strength of the market where the dictates of the current demand and supply dynamics reign supreme.
- circa 25% above the reserve.
