It's one of the only times when I've had so few sales
In a single Melbourne weekend, two auctions told the story of a property market divided against itself. An Elsternwick townhouse passed in $125,000 below reserve without a single genuine bid, while a Fitzroy terrace drew four competing buyers and sold more than $200,000 above its floor — a reminder that even in subdued conditions, the right property in the right place can still command desire. The gap between these two outcomes is not merely statistical; it reflects a deeper uncertainty about value, expectation, and the willingness of buyers to commit in a market where caution has become its own kind of wisdom.
- A renovated Elsternwick townhouse sat in silence at auction — only the vendors themselves bid, pushing the price to $950,000 before the gavel fell $125,000 short of reserve.
- The auctioneer admitted he had rarely seen so few sales as a listing agent, pointing to unnamed external pressures reshaping what buyers are willing to pay.
- Just suburbs away in Fitzroy, four bidders competed fiercely over a character terrace, driving the price past $1.33 million and exposing how sharply outcomes diverge by location and property appeal.
- Agents are now urging vendors to recalibrate expectations downward, as historically low sales volumes signal that the market's patience for ambitious pricing has worn thin.
- With 972 properties scheduled across Melbourne that same weekend, the volume of listings masked a quieter truth: activity and success are no longer the same thing.
On a Saturday in Elsternwick, a renovated mid-century townhouse at 3/33 Nepean Highway went to auction and came back unsold. The auctioneer opened with a vendor bid of $925,000, pushed it to $950,000 with another, and waited. No one else stepped forward. The property — freshly painted, with a new kitchen and bathroom, floating floors, and a rear courtyard — had been guided between $1,075,000 and $1,180,000, with a reserve of $1 million. It fell $125,000 short of that floor.
The vendors, an older couple hoping to downsize, had been approached about selling privately before the auction. They chose to test the market instead. The market gave them its answer plainly. Auctioneer Stan Michael from Barry Plant Rowville said conditions had produced some of the lowest sales volumes he could recall as a listing agent, and gently urged vendors to align their expectations with what buyers could actually bear.
The same weekend offered a sharp counterpoint in Fitzroy. A two-bedroom terrace at 183 George Street — older in some respects, but rich with character — drew four bidders and sold for $1,332,000, more than $200,000 above its $1,125,000 reserve. Exposed brick, timber beams, hydronic heating, two living zones, and a generous courtyard garden gave it a liveability that buyers recognised and competed for. The Nelson Alexander agent attributed the result to those small but meaningful differences that separate a property from its peers.
The contrast between the two auctions captured something true about Melbourne's market at this moment. Location still matters. The right home in the right place can still ignite competition. But in Elsternwick, on a service road off a major arterial, with a reserve that the market simply would not meet, the vendors left without a sale — and the broader picture grew a little more complicated.
A brick townhouse in Elsternwick failed to find a buyer at auction on Saturday, passing in at $950,000 after the auctioneer recorded just two bids—both from the vendors themselves. The property, a renovated mid-century double-storey at 3/33 Nepean Highway, had been offered with a reserve of $1 million and a price guide between $1,075,000 and $1.18 million. It sat $125,000 below its floor price when the gavel came down.
The home itself presented well. Fresh paint, a new kitchen and bathroom, floating floorboards, and a generous rear courtyard with deck suggested the owners had invested in making it appealing. But appeal alone was not enough. Stan Michael, the auctioneer from Barry Plant Rowville, opened bidding at $925,000 with a vendor bid, then pushed it to $950,000 with another. No one else stepped forward.
What happened before the auction tells part of the story. Michael said the agency had approached the vendors—an older couple downsizing—about selling privately before taking the property to market. The vendors wanted to test the auction process instead. They got their answer. The market, it turned out, was not interested in testing anything. It was simply quiet.
Michael did not mince words about the conditions. "It's one of the only times when I've had so few sales as a listing agent," he said, attributing the slowdown to external factors he did not name. He urged vendors to listen to their agents about what the market could actually bear, a gentle way of saying that expectations needed to shift downward. The property was one of 972 scheduled for auction across Melbourne that week—a volume that suggested activity, but not necessarily success.
Yet the same weekend told a different story just a few suburbs away. In Fitzroy, a two-bedroom terrace at 183 George Street sold for $1,332,000 after four bidders drove the price more than $200,000 above its $1,125,000 reserve. The home was dated in some respects but filled with character—exposed brick, timber beams, hydronic heating, and a lush garden tucked into a large courtyard. It had two living zones, a rarity in its price bracket and location. James Pilliner, the Nelson Alexander agent who auctioned it, attributed the strong result to those "small differences." The buyer was local and, Pilliner suggested, understood what they were getting: a well-laid-out, light-filled space that felt, despite its age, genuinely livable.
The Fitzroy sale was part of an estate, which may have drawn a particular kind of buyer—someone with time and intention rather than urgency. The Elsternwick vendors, by contrast, were simply trying to move on. The contrast between the two results was stark enough to illustrate the market's unevenness. Location mattered. The right property in the right place could still attract competition. But in Elsternwick, on a service road along a major arterial, with two bedrooms and a $1 million reserve, the property could not clear its own bar. The vendors walked away without a sale, and the market tightened a little more.
Notable Quotes
It's one of the only times when I've had so few sales as a listing agent— Stan Michael, Barry Plant Rowville auctioneer
The buyer really appreciated the spot, and the fact it has two living zones— James Pilliner, Nelson Alexander Fitzroy agent, on the Fitzroy sale
The Hearth Conversation Another angle on the story
Why did the vendors reject a private sale offer and insist on going to auction?
They wanted to test the market—to see what the open process would bring. Sometimes that works. This time it didn't. They got their answer, just not the one they hoped for.
The auctioneer said it's one of the only times he's had so few sales. What does that actually mean for someone trying to sell right now?
It means the pool of buyers has shrunk dramatically. You can have a well-renovated home with new finishes and still not attract a single genuine bid. The market isn't rejecting the property; it's rejecting the price point, or the location, or both.
But the Fitzroy terrace sold strongly. What's the difference?
Character, location, and layout. Fitzroy is hotter than Elsternwick. The terrace had two living zones in a price bracket where that's rare. And it was part of an estate—the buyer may have had different motivations than someone shopping in a tight market.
The auctioneer urged vendors to listen to agents about market conditions. Is that code for "lower your expectations"?
Exactly. He's saying reserves are too high, price guides are too high, and vendors are out of step with what buyers will actually pay. The gap between what sellers want and what buyers will offer has widened.
What happens to the Elsternwick property now?
It passes in, which means it's still for sale—but now it's off the market's radar. The vendors will likely negotiate privately or relist at a lower reserve. The damage is done, though. A failed auction is a signal.