Clash between locals and Chinese buyers re-emerges in Melbourne's Canterbury: Mal James

Canterbury had Melbourne's top sale - well above its $3.5 million reserve - when a three-bedroom home at Canterbury sold for $4.11 million with four bidders competing through Kay and Burton.

It was a Lewis Coote-designed home built for the vendors in 1988 on its 847 sqm block which cost $96,000 in 1980, reflecting 11 percent annual price appreciation.

Melbourne buyers agent Mal James advised the strong result at 9 Victoria Avenue, Canterbury (above) highlighted the re-emergence of the Asian market and "it’s clashing with the strong local market" which prior to the winter break had been left to provide the market leadership. He advised three of the four bidders were of Asian background.

"We are a multi-cultural city and therefore it’s impossible for us to determine the exact nature of everybody’s citizenship on the fly at an auction – so what we are saying is, we are seeing stronger and more bidding from buyers with an Asian background – more bidding than we did in the second half of last year and the first half of this year," Mal James suggested.

The most affordable auction property reported sold at the weekend across the country was a one-bedroom unit at 3/239 Canterbury Road, St Kilda (below), that sold for $211,000 by Gary Peer and Associates who had been giving a revised $200,000 plus price guidance.

It last sold at $80,000 in 1998, so reflected 5.6 percent annual price growth. The 1960s apartment was recently available at $350 a week asking rental, reflecting a 8.6 percent gross rental yield.