A BRIGHTON home sold for $7.5 million and a Grey Street mansion in St Kilda fetched around $4 million as the city turned its attention from real estate to racing.
The top end deals follow several recent high-profile sales in the key suburbs of Brighton and Toorak and point to renewed economic confidence and stability.
Economic pundits are also expecting the Reserve Bank to cut the cash rate by 25 basis points to 3 per cent on Cup Day.
Kay & Burton director Stewart Lopez is believed to have sold 15 Park Street, near Middle Brighton beach on Friday for $7.5 million in an expressions of interest campaign that closed earlier in the week.
Greystones, the six-bedroom 1914 arts-and-crafts-style house, is on 2220 square metres and includes a pool and grass tennis court.
While recent public auctions at the top end have fallen flat - 116 The Esplanade in Brighton was passed in on a vendor bid of $8 million on Thursday night - many sell quietly off-market, in expressions of interest campaigns or in boardroom auctions.
Kay and Burton agent Michael Armstrong sold two Golden Mile Canterbury properties last week, including 1289 square metres of vacant land at 26 Monomeath Avenue.
An expressions of interest campaign for the rolled-gold turf turned into a boardroom auction with four parties bidding.
''It was a boilover,'' Mr Armstrong said. ''We had four bidders, two offshore buyers. We had expected it to sell in the mid-$3 millions and had documented interest at that level. But it sold for in excess of $4 million to a Chinese buyer.''
The top end ''is in revival mode'', he said. ''In the past couple of months we've done better than the first six or seven months put together.''
''Our part of the market is very much linked into the financial markets. People were fearing the worst in the last couple of years. The fact that things have stabilised and the dark clouds of Europe have lifted and the US economy has improved - that's all made a big difference.''
In St Kilda, a local family paid an undisclosed price, believed to be around $4 million, for a historic mansion at 71 Grey Street, which was sold by the Presentation Sisters.
Bennison Mackinnon director Iain Carmichael said the expressions of interest campaign turned into an auction last week after some parties indicated they wanted more transparency in the sales method.
But there was just a single $3.8 million bid for the 18-room property, which is on 1760 square metres and has been operating as a boarding house.
Earlier this year, Port Phillip Council was offered the property and its adjoining land for $14 million. Mr Carmichael said the 788 square metre parcel of land at 71a Grey Street passed in on a vendor bid of $1.5 million.
Auction offerings were light over the weekend, overshadowed by Derby Day and Tuesday's Melbourne Cup.
The Real Estate Institute of Victoria reported a 62 per cent clearance rate from 163 auctions. A further 16 results are pending.
Last weekend's strong result was marked down to 64 per cent after the stragglers were counted, which is a healthy result for a market that has been ailing for nearly two years.
The next few weeks will test the broader market. Some 810 auctions are scheduled next weekend and then it's less than seven weeks to Christmas.