Clovelly house sells for more than $3.6 million at auction as young families battle it out

A family of five spent more than $3.6 million at auction on a three-bedroom Clovelly property they hope to rebuild in the future.

It soared $285,000 above reserve after being offered to the market for the first time in 40 years, as the winners went head to head with another young family.

About 30 people braved the chilly morning to watch the two parties compete for 83 Boundary Street, one of 443 Sydney properties taken to auction on Saturday.

By evening, Domain Group had recorded a 62.9 per cent clearance rate from 252 reported results.

It was a slow start to bidding for the two-bedroom house opposite Waverley Cemetery, which also had a self-contained one-bedroom apartment below.

Despite four registered bidders, auctioneer Andrew Cooley of Cooley Auctions had to wait minutes for an opening offer.

Once one local couple piped up with an offer of $2.9 million, the eventual buyers  — another couple with a baby in tow — hit back with a $2.95 million bid and the race was on.

The bidding increased in $50,000 jumps up to $3.45 million, after which some smaller $25,000 and $10,000 bid increases were made before the hammer fell.

The 354-square-metre block with water views sold for $3,635,000 to the second couple to bid. They hope to rebuild a dream home for their family of five on the property down the track.

It was a bittersweet moment for Clovelly vendor John Bulbert, whose parents bought the property for $58,000 back in 1979.

“I’m really happy that a young family bought it. Hopefully they will have it for another 40 years,” he said.

While the initial silence from bidders left Mr Bulbert nauseated, he was pleased with the end result. “It’s an uncertain market, so you really don’t know until the day how it will go,” he said.

Mr Bulbert is hoping to downsize in the area, but noted there was little suitable stock around.

Selling agent of Daniel Gillespie of Belle Property Bondi Junction said it was a strong result and noted the house has been popular because it was one of few remaining cottages on the street.

Tighter stock levels are proving good news for vendors on the market over the winter months, Mr Gillespie added.

“A lot of people are holding back until spring,” he said. “If you are a vendor now is probably a better time…  to take advantage of low supply.”

Mr Cooley is already expecting a busy spring, due to a return in market confidence off the back of the federal election, easing lending restrictions and an interest rate cut.

“I’ve definitely noticed an increase in our clearance rate – most weeks now it is sitting between 55 and 60 per cent. We’re averaging three bidders per auction as well so buyers are definitely getting more involved,” Mr Cooley said.

“Buyers are really feeling like now is a good time to be getting in and capitalising, before things really start to take off.

“A lot of owners now will be starting to see this improvement in the market and will be coming on in spring.”

In the inner west, another house with a date with a wrecking ball sold for $400,000 above reserve.

The three-bedroom 1960s cottage at 40 Thames Street, Balmain, had seen better days, but that did not stop 10 parties registering to bid on the 309-square-metre block.

A buyer’s agent started bidding at $2,517,000 and three others buyers joined in the fray, pushing the price up to $3.15 million, well above the $700,000 it last sold for in 1998.

It sold through Matthew Hayson of Cobden & Hayson to a builder who won the auction with a sole bid, just before the hammer was about to fall. He plans to act on the DA-approved plans for two new terraces on the site.

It was a more subdued affair at one of Mr Hayson’s earlier auctions on Saturday, when 37 Nelson Street, Rozelle – which drew two bidders – passed in on a vendor bid of $1.65 million. The three-bedroom house went on to sell for $1.6 million post-auction.

Over on the north shore, five bidders and a crowd of about 100 turned out for the auction of a three-bedroom house on an oversized 1041-square-metre block at 21 Fullers Road, Chatswood.

Bidding started at $2.2 million and climbed in $50,000 jumps to $2.45 million, before the pace slowed, with three of the bidders making offers before the hammer fell at $2.56 million – $210,000 above reserve.

Francis Zhang of Tracy Yap Realty North Shore said the block with duplex potential set a new street record. It was snapped up as an investment property for a Drummoyne family. The vendors, who records show bought the house for $610,000 in 1999, are downsizing.

In neighbouring Roseville another three-bedroom house sold for $2,001,000 at an auction which drew seven buyers.

Bidding for 40 Barcoo Street kicked off at $1.5 million and climbed in $50,000 and $25,000 increments for much of the auction, quickly passing the $1.75 million reserve as five of the bidders competed.

It sold through Jill Henry of Stone Real Estate Lindfield to a young family from Ryde, who won the auction with their second bid, offering a $1000 increase. Records show the 740-square-metre block last sold for $1,040,000 in 2010.

In Waverton, it was a battle of the first-home buyers and investors when a whopping 16 parties registered to bid on a two-bedroom apartment.

The auction for 12/2 Waverton Avenue started with a $1,025,000 bid and competition between five of the bidders pushed the price $120,000 above reserve to $1.19 million.

It was a first-home buyer couple who secured the keys. Selling agent David Hill of Raine & Horne HM Group said they plan to renovate the kitchen and bathroom before moving in.

Records show the unit last traded for $299,000 in 1996.