Derelict Newtown terrace sells for $1.05 million at auction

It was dilapidated, dirty and outright hazardous but a Newtown terrace on a tiny block still managed to sell for more than $1 million on Saturday.

Caution tape, cracked walls and cobwebs weren’t enough to deter buyers. Nor were the broken floorboards and glass, the overgrown yard, or the damaged furniture, old newspapers and rubbish strewn throughout the home.

It was one of about 804 Sydney properties scheduled to go under the hammeron Saturday. By evening, Domain Group had recorded a clearance rate of 66.5 per cent from 461 reported results.

The two-storey terrace at 48 Queen Street was in such a state that only people over the age of 16 — and wearing enclosed shoes — were allowed to enter. 

Prospective buyers were also required to sign a waiver, and for good reason, with this intrepid journalist falling through the floorboards in the dining room. 

Bidding on the two-bedroom, one-bathroom terrace, with no parking, kicked off at $800,000 — which McGrath chief auctioneer Scott Kennedy-Green dubbed “a low start”.

It climbed in $20,000 and $10,000 jumps, quickly hitting the $1 million reserve price, as just two of the eight registered bidders — an interior architect and a builder — went back and forth.

It was interior architect George Rilkovski, bidding on behalf of joinery company Oska Group, that nabbed the terrace for $1,051,000.

The company has worked on hundreds of houses but Mr Rilkovski said it was their first property purchase, and part of a new venture, Oska Built. 

“We’re in the business of renovating homes for other people, and we thought this might be the perfect opportunity to start our own venture in terms of buying property and renovating for ourselves,” he said. 

“Our challenge was to find a property that maybe others wouldn’t want to touch,” he added.

But there was plenty of interest in the terrace, with selling agent Damien West, of McGrath Newtown, showing more than 100 groups through the home.

“The very first inquiry I had was expletive laden,” he said. “They wanted to know how I could dare to have a $1 million price guide on it … but we got interest around that level.”

Builders and architects estimated the cost to renovate or extend the home, could range anywhere from $200,000 to $500,000, Mr West said.

Vendor Bob Sheather, who relocated from Sydney to the Mid North Coast, said while the terrace had always been in need of some “tender, loving care” it had fallen into further disrepair in recent years. 

Mr Sheather, who said he bought the terrace for about $11,000 in the early 1970s, felt it was time to let the 76-square-metre block go.

“I think I’ve had it long enough,” he said. “And I think it’s been turned over a few times in the last 18 months, so I don’t want it sitting empty any more.”

Meanwhile in the city’s east, another tightly-held terrace in Paddington also drew strong interest from renovators, with 13 parties registering to bid. 

The auction for the two-bedroom, one-bathroom terrace at 46 Walter Street kicked off at $2 million, and the home was on the market from the opening bid. 

While six buyers made offers on the corner block, by the time bidding had hit $2,375,000 it was down to a two-man race. 

The terrace sold for $2,505,000 through Myles du Chateau, of Richards Elliot Estate Agents. It was nabbed by an eastern suburbs family who will rent out the terrace in the short-term before transforming it into their dream family home.

It was a different story at the auction of a North Strathfield house, owned by the same family for more than 50 years. 

Only two people turned up to bid on the 362-square-metre block at 21 Queen Street, which is an area zoned for medium-density development.

Bidding started at $1.2 million and stalled at $1.28 million, at which point the property was passed in. 

Selling agent Christian Leung, of Raine & Horne Concord, was negotiating with multiple parties on Saturday afternoon and expected the two-bedroom home to sell in the coming week.

Elsewhere in Sydney

A Hamptons-style resort home on 1715 square metres at 16 Brighton Street, Freshwater, sold for $5.9 million. Photo: Clarke & Humel

SOLD $5.9 million
Freshwater
16 Brighton Street
6 bedrooms, 6 bathrooms, 4 car spaces

This new Hamptons-style house set a suburb record when it went under the hammer on Saturday. Bidding opened at $5.5 million and went up in $100,000 jumps to start, with five of nine registered bidders pushing the price $300,000 above the reserve. The 1715-square-metre block last traded for $2.13 million in 2012. Selling agent Mike Dunn, of Clarke & Humel, showed more than 200 groups through the home, which has no water views.

905A/780 Bourke Street Redfern.

SOLD $2,015,000
Redfern
905A/780 Bourke Street
3 bedrooms, 2 bathrooms, 2 car spaces

Despite six people registering to bid on this top-floor apartment, only one buyer meant business. When calls for an opening offer fell on deaf ears, a vendor bid of $1.95 million was made. The sole active bidder topped it with an offer of $1,975,000, at which point the property passed in. While the apartment failed to sell under the hammer, it was snapped up just minutes later by the bidder. The apartment, sold through Walter Burfitt-Williams of McGrath Edgecliff, last traded for $775,000 in 2011.

35 Reserve Street, Annandale NSW. Photo: Mind The Gap

SOLD $2.1 million
Annandale
35 Reserve Street
3 bedrooms, 1 bathroom, 0 car spaces

Competitive bidding saw this former shopfront sell for $150,000 above reserve. Bidding on the transformed property started at $1.75 million, well above the $1.17 million records show it last sold for in 2009. Five of six registered bidders competed for the keys, with the house selling to a couple from Surry Hills who had only seen the property for the first time three days earlier. The home sold through Robert Clarke of Belle Property Annandale, who showed about 100 groups through the home.