Buyers priced out of Surry Hills find better value in Redfern with $1.14 million apartment

It was the early bird who got the worm at the auction of a converted warehouse apartment in Redfern on Saturday.

Priced out of his beloved Surry Hills, first-time bidder Shane Stewart was the first to arrive at the early morning auction flanked by partner Gerard Packham and friends. Despite rookie jitters, he dug his claws into the thick and fast auction, with a final winning bid of $1.14 million – $135,000 over reserve.

The two-bedroom and two-bathroom digs with one car space and two courtyards at 43/153 George Street was one of 790 properties scheduled to go under the hammer on the biggest auction Saturday of the year so far.

By Saturday evening Domain Group had collected 579 results and put the clearance rate at 81.4 per cent.

“Hungry buyers devoured the surge in auctions listings this weekend with yet another boom clearance rate,”  Domain chief economist Dr Andrew Wilson said.

Mr Stewart said the auction went so fast that at times he was bidding against himself.

“It was a bit higher than I was hoping to pay but I’m still comfortable.”

Mr Stewart, who loved living in Surry Hills, had been looking at other suburbs like Redfern and Waterloo that offered better value for money.

“I currently own a one-bedder in Surry Hills … I can’t afford a two-bedder there.

“Redfern is an extension to Surry Hills, it has a great urban vibe.”

Auctioneer Damien Cooley from Cooley Auctions told the crowd of 25 with eight registered bidders he hoped for a $900,000 start and $10,000 increments. An investor buying with three friends for the potential $850 weekly rental return, kicked off the bidding. Mr Stewart came in second, raising him $10,000. It was game on between them until the investor backed down after Mr Stewart’s $1 million bid.

New bidders joined briefly, including a the latecomer underbidder, also a Surry Hills resident, who then tried his luck. Mr Stewart almost had it at $1,135,000 until Mr Cooley suggested to the stretched underbidder to go $1000 more, which he did.

But it was Mr Stewart who had the final say at $1.14 million and at the fall of the hammer, a scream of elation came from the small party.

The vendors, who wished to be anonymous, owned the ground-level, rear-of-block apartment for a year. They said the result exceeded their expectations and they were thrilled. They rejected an investor’s offer of $1,005,000 earlier in the week.

Agent Simon Fletcher of Belle Property Surry Hills said the apartment was so popular with 160 group inspections and 25 contracts issued in three weeks, he brought the auction forward a week.

“It was the only two-bedroom Redfern property on the market for around $1 million. Everything is $1.1-$1.2 million and up,” Mr Fletcher said.

“Buyers are getting priced out of Surry Hills; a flush of stock has come on that we haven’t seen last year; Redfern is a suburb that is performing better than Surry Hills.

“I’ve had a fair amount of investors which is surprising to me, other potential buyers included cashed-up couples, first-home buyers and baby boomers from the inner west wanting to move into the inner city.

“Redfern market is getting busier with people rushing in to buy before Christmas and to get on the market now. As the year end draws nearer, potential sellers say to themselves ‘the market is good; do I sell now or wait for next year?'”

The George building warehouse conversion renovation was completed a year ago. It previously had a variety of uses. It held boxing tournaments as the Royal Star Palace Theatre from 1921-26 and Leyland Motors head office from 1927.

Only last week Jack McGhee from Ray White Surry Hills sold apartment 23 in the same building. The one-bedroom north-facing courtyard unit with one bathroom and no parking sold for $747,000.