Annandale shopfront and home sells for $1.65m after slow auction

The deluge of rain on Saturday morning dampened bidding for an Annandale home and shopfront which failed to sell under the hammer despite being on the market for the first time in almost four decades.

The mixed residential and commercial property failed to garner a big crowd despite being located in a prime spot on the suburb’s main drag.

The two-storey residence at 155 Nelson Street was one of 178properties scheduled for auction in Sydney on Saturday. By evening, Domain Group had recorded a clearance rate of 57.5 per cent from 112 reported results – the market’s lowest result in more than two years.

Despite two registered bidders in the crowd, Callagher Estate Agents auctioneer David Giezekamp was forced to kick off the proceedings with a vendor bid of $1.6 million.

It was five minutes into the auction by the time a local buyer hit back with a counter-bid of $1.61 million.

The competition remained silent before the local buyer then raised his offer to $1.62 million after much encouragement from the auctioneer Mr Giezekamp.

As the rain fizzled out so did the auction with the property passed in a mere 15 minutes after it began. It later sold to the sole active bidder in post-auction negotiations for the reserve price of $1.65 million.

The local family plans to hold it as an investment and potentially renovate into their dream home down the track.

While the result for the tightly-held home was well above the $42,500, records show it last traded for in 1980, it was $100,000 shy of Annandale’s median house price.

Paul Creedon of Callagher said vendors had to have realistic price expectations as buyers had the upper hand with more stock on the market.

“If the vendors are unrealistic, it won’t sell,” said Mr Creedon. “It’s a more energised market, buyers have recharged [over the summer] and it takes two to tango.”

Originally built in the 1870s, on a sandstone escarpment, the facade of the landmark building remains largely intact. While parts of the corner shop looked tired with peeling paint and run down amenities, the small two-bedroom residence was in good condition.

It’s the “unique and rare” offering of a mixed residential and retail property which attracted a lot of interest, according to Mr Creedon.

The shop front has been home to du Moulin Gallery and Fine Frames, owned by Rod and Danielle Green, for about 20 years.

The couple, who were amongst the crowd, were initially tempted to run a horse in the race but decide to focus on continuing their business.

“We didn’t want to bite off more than we can chew. But there are so many options with what you could do to the place,” Mr Green said.

The vendors, who live in New Zealand, used both the residential and commercial space as an investment property.

Mr Giezekamp agreed the market was looking up, with a strong supply of quality properties coming through.

“There will be a slow build of beautiful stock. We’re going to see a rise of clearance rates, especially with the way it finished last year. It was over-supplied and unrealistically priced,” said Mr Giezekamp.

It was a very different story a short walk down the road when a nearby two-bedroom house at 198 Nelson Street went under the hammer.

Five of nine registered bidders battled for the 244-square-metre block, pushing the price $110,000 above the reserve.

It was a young couple who kicked off the bidding – at $1.28 million – who nabbed the tightly-held property for $1.51 million. The house sold through James Burke of Callagher.

In the city’s south, about 30 people gathered for auction of a three-bedroom home in Bexley, which records show last sold for $823,000 in 2014.

Among those vying for the keys of 519 Forest Road were a local couple who had never set foot in the house prior to auction day.

“They’d never seen the property, they were just out walking the dog and saw it was going to auction,” said selling agent Julie Pollard of McGrath St George. “The live in the street behind and I think were looking for an investment.”

The bidding kicked off at $900,000 and went up in $10,000 increments for most of the auction, as the couple went up against an owner occupier from the western suburbs.

They looked to have it in the bag a $1,005,000, but the owner occupier hit back with a $1000 rise, securing the home for $1,006,000. The property sold for $6000 above reserve.