Bayside art deco house passes in at $1,585,000
Sydney Morning Herald
by Caroline ZielinskiFebruary 14, 2026
AI-Generated Deep Dive Summary
A fully renovated Art Deco house in St Kilda, Australia, failed to sell at auction after a fierce bidding war between two parties pushed the price to nearly $1.6 million. The property, located at 27 Havelock Street, was guided between $1.4 million and $1.5 million but ultimately passed in despite reaching $1,585,000. Auctioneer Michael Hingston noted that while there was no legal requirement for the vendor’s reserve to align with the price guide, the final bid fell short of the seller's expectations. This auction highlights the competitive nature of Melbourne's property market, where demand continues to outpace supply despite concerns about rising interest rates.
The house, which featured three bedrooms, an entertainer’s kitchen, and a private deck, attracted significant interest during the auction. Bidding started at $1.4 million and escalated in increments of $25,000 before slowing down as it approached the $1.5 million mark. The second bidder was invited to negotiate with the vendor following the failed sale, leaving the property's future uncertain at the time of reporting. This outcome underscores the importance of vendors setting realistic reserves that reflect market conditions, especially in a hot seller’s market.
Elsewhere in Melbourne, a three-bedroom house in Heidelberg Heights sold for $1,052,000, exceeding its price guide of $920,000 to $980,000. Similarly, a unit in Elwood fetched $1.04 million, surpassing its reserve of $1.02 million, with buyers competing fiercely for properties that offer "house-like proportions." These examples demonstrate the strength of Melbourne's property market, where buyers are willing to pay premium prices for well-located, desirable homes.
The broader auction results in Melbourne this week also reflected a seller-friendly environment. With 68.4% clearance rates from reported results, the market showed resilience despite recent interest rate hikes. However, some experts noted that the market remains "patchy," with varying outcomes across different regions and property types. This suggests that while demand is strong, there is still room for caution as economic factors like rising rates could impact buyer activity in the future.
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Originally published on Sydney Morning Herald on 2/14/2026