University Student Secures $1 Million Fitzroy Home at Auction

In a surprising turn of events at the Melbourne property auction held on July 5, 2025, a third-year university student triumphed over a seasoned investor from Sydney to purchase a two-bedroom terrace house in Fitzroy for $1,022,000. The auction, which was part of a larger event featuring 617 scheduled sales across Melbourne, showcased the competitive nature of the current real estate market in the city.

The property, located at 1 Cremorne Street, occupies a modest 77 square meters and has been an investment property until its recent sale. According to Mark Verrocchi, the selling agent and auctioneer from Nelson Alexander, the house was listed with a price guide of $900,000 to $990,000, making the final sale price a notable achievement. Verrocchi commented, “For 77 square metres, it was a great result, fair market value. It was very nice and tidy, comfortable, very cosy.”

The auction was characterized by a fierce bidding war between the young buyer, aided by his mother, and the Sydney investor, who had traveled down to take part in the sale. Verrocchi noted the significance of this outcome, stating, “It was refreshing to see that an investor from Sydney was looking to capitalise on the fact Melbourne is undervalued in comparison to the other major cities.”

This sale reflects broader trends in the Melbourne real estate market, where competition remains high amid ongoing demand. The auction also featured a three-bedroom home in Clifton Hill that sold for $1.8 million, $200,000 above its reserve price. This property, listed by Jellis Craig and attracting three bidders, underscores the persistent desirability of inner-city homes in Melbourne.

Public records reveal that the Fitzroy property was last sold in 1993 for a mere $157,500, highlighting the remarkable appreciation in property values over the past few decades. The ongoing interest from both local buyers and investors signals a robust recovery in the real estate sector post-pandemic, as cities like Melbourne continue to draw attention from investors seeking opportunities in a market characterized by rising prices and limited inventory.

Furthermore, with the recent economic uncertainties and fluctuations in interest rates, many are closely monitoring the housing market's trajectory. Experts suggest that while the current environment presents opportunities for buyers, challenges remain, particularly for first-time homebuyers who face increasing competition from investors.

Looking ahead, the Melbourne property market is expected to continue evolving, influenced by factors such as economic recovery, demographic shifts, and policy changes. As the city’s real estate landscape transforms, prospective buyers and investors alike will need to navigate these complexities to make informed decisions in their pursuits. The outcome of this auction serves as a case study for the dynamic nature of the market, where opportunities can arise unexpectedly, even for those considered underdogs in the bidding process.