Castlecrag house under conservation cloud sells almost $1 million over reserve

A tired 1950s brick house in a prestige enclave on Sydney’s lower north shore sold under the hammer for almost $1 million over its reserve on Saturday morning.

It was one of 833 auctions held in Sydney ahead of the upcoming Easter break in mid-April. By Saturday evening, Domain Group had collected 605 results to put the clearance rate at 80.2 per cent.

“There’s no doubt the market continues to meet all its challenges,” said Domain Group chief economist Andrew Wilson. “Despite a surge in listings and higher interest rates announced this week, there seems to be no stopping the Sydney market, with yet another strong clearance rate.” 

The opening bidder at the on-site auction of 220 Edinburgh Road in Castlecrag attempted to unsettle other hopefuls by questioning auctioneer Vic Lorusso about the property’s conservation listing which could restrict any structural changes to the property.

“I just want to confirm this property is in a conservation area,” he bellowed. With a quick, confident confirmation by Mr Lorusso, the bidder called a $2.5 million bid.

That sum would have satisfied the vendor, who was selling on behalf of a family trust, when the selling campaign started three weeks ago.

Sales agent David Buttel of Raine & Horne Neutral Bay had a guide of $2.2 million to $2.4 million for the four-bedroom house on 689 square metres at the start of the campaign. “It is a very plain house with an awkward floorplan and under a cloud from its conservation restrictions,” Mr Buttel said, but that didn’t dampen buyers’ enthusiasm. His team had issued 36 contracts in the lead-up to Saturday’s auction.

“We bumped up the guide to $2.5 million to $2.7 million, but then in the last 24 hours of the campaign, the level of interest was so strong we recommended the reserve be set at $2.65 million,” said Mr Buttel.

A large four-bedroom house at 228 Edinburgh Road, in better condition and with similar water views over Sailors Bay but on a steep, smaller block, sold in August for $2.8 million. And 10 doors along, another 1950s brick house at number 240 sold for $2.17 million in September. It came with DA-approved plans for a new home.

Mr Buttel said it was the view, the potential to renovate and that the initial anticipated price was at a very realistic and affordable level. “The final price was way beyond our thoughts,” he said.

“We were a bit cautious because of the conservation restrictions. There was a lot of negativity being thrown about the conservation area, but at the end of the day the market spoke and it was a massive result,” he added.

Domain Group Data’s chief economist Dr Andrew Wilson said Castlecrag is one of the top-performing suburbs in the prestige market. “Castlecrag is in the top five suburbs of the prestige market with a 100 per cent clearance rate over the past month,” said Dr Wilson.

Seventeen bidders registered and 58 bids were taken from seven bidders. After the price reached $3 million, the number of bidders dropped back to just three.

The chewing gum got a solid workout from the eventual buyer who was encouraged throughout the nerve-wracking bidding war by his wife and six-year-old son who, on the fall of the hammer, threw his arms in the air shouting, “We won!”

The family from nearby Castle Cove chose to remain anonymous. At one stage, when their hopes were flagging, Mr Lorusso buoyed them saying, “Just think, you can turn off your Domain property app tonight if you buy now.” And later, as the price continued to climb, Lorusso added, “You don’t want to drive along Edinburgh Road in the future and think, ‘I could have owned that house’.”

The family plan to rent the property first while confirming with Willoughby Council what work they can do under its conservation guidelines. The couple would like to capitalise on its water and city skyline views and move in following the renovations.

One of their bidding opponents who remained in the competition to the end said she was surprised by the result. “With the impending budget, I’m surprised there was so much robust bidding.”

Elsewhere across Sydney:

The Surry, a boutique development in Surry Hills by designer siblings Camilla and Oscar Done, launched on Saturday. Fifty per cent of the 24 apartments sold on Saturday morning, with the highest price reaching $3 million for a 105-square-metre three-bedroom apartment.

CBRE director Ben Stewart said about 80 per cent of the buyers were owner-occupiers from the local area including Bondi Junction. “Many of the buyers here today recognised the rarity of this type of residential offering in Surry Hills and were impressed with the exceptional design of the building itself,” said Stewart.

The Surry, due for completion in 2019, is the latest offering by Cadmium Property Group who engaged architects Angelo Candalepas and Associates to design the building which comprises one-bedroom units starting at $895,000, as well as two- and three-bedroom units. Interiors are by Lawless & Meyerson.

“With no new stock available, The Surry is an outstanding investment particularly due to the location being close to key amenities and transport options including Central station and the new light rail,” said Mr Stewart.

A record was set for the southern suburb of Gymea when a young family from Connells Point paid $422,000 over the owner’s reserve to snag a big and beautifully presented home at 65 Talara Road. The five-bedroom house sold for $2,222,000 to a couple from Connells Point. Selling agent Justin Ressler from Ressler Property had 12 parties register and five groups bid. “It was built in 2009 but everyone thought it was brand new,” he said.” All credit to the sellers.” More than 130 groups inspected the two-storey house. 

In Mosman, this unrenovated house 300 metres from Balmoral Beach at 9 Lavoni Street, sold for $4,492,000. Tony Walker of Shead Property Chatswood said all the buyers were from the local area looking to get closer to the water. The new owners paid $200,000 over reserve and will undertake a substantial renovation.  

And in Sydney’s inner west, a buyer from the United States paid $430,000 over reserve for a superbly renovated and extended freestanding house at 65 View Street in Annandale. Michael Clarke from Belle Property Annandale had eight bidders register and four bid. The four-bedroom Victorian house sold for $3.83 million. The buyer will rent it out for the next year to 18 months before relocating. It should rent for $1800 to $2000 a week.

At Concord, a bungalow offered for the first time in 60 years attracted 30 registered bidders. Eight parties bid for the house at 62 Cabarita Road taking the price to $2,575,000 — $375,000 over reserve. Dib Chidiac of Raine & Horne Concord said the buyers are young builders from Strathfield who will rebuild a new home on the level 600-square metre corner block.