Eastwood house bought for about £6000 sells for $2.565 million at auction
An unassuming Eastwood house going under the hammer for the first time in more than six decades attracted more agents than bidders, a designer-clad audience and a collection of luxury cars before selling for $2,565,000.
The humble three-bedroom property at 8 Hunts Avenue was held in the same family since 1956 when it was bought by newlyweds – a stenographer for a nearby Presbyterian church and draughtsman working in Redfern – for about £6000.
The property, which had no price guide, had an entourage of 19 agents dressed to the nines working an auction floor that spilled across the road among parked cars – some of which, such as a Mercedes G Wagon, cost about as much as a house deposit.
The agents were in good company as they were allocated to each of the 17 registered bidders who were wearing Givenchy and Gucci sneakers as well as Louis Vuitton jackets, scarves and bags.
Bidding was quick to start at $1.5 million, rising in mostly $10,000 increments as nine parties – a mix of developers, investors and owner-occupiers – participated in the sell-off.
After a theatrical back and forth, the home eventually sold for $2,565,000 to a young Carlingford family looking to build their dream house. The reserve was $1.98 million.
The successful buyer Shawn, who declined to reveal his last name, said they had been watching the market for the past year.
“It is a bit higher price than we expected. We love this area, at the end of the day, we had to get somewhere in here – we like this street and the neighbours,” he said, adding that rising interest rates were a factor in their bidding, but the price was still cheaper than the peak.
“Even during the auction we had to calculate how much monthly repayments would be … six months ago, it would have been $2.9 to $3 million.”
The vendor’s adult children, who were concerned about the property market, were thrilled with the result, however bittersweet.
“I actually remember when this street wasn’t kerbed and guttered. Threlfall Street around the corner there, it was not kerbed and guttered, and it was just gravel and a dirt road then they sealed it with that really smooth tar, and as a kid that was perfect skateboard, billy-cart material,” said Warwick Reynolds, one of the vendor’s adult children. “We obviously have a lot of memories. It is literally, for me, the end of an era.”
They believed their parents paid between £5000 and £6000 for the property.
Selling agent Paul Tassone of Melrose Estate Agents said the result was better than expected.
Cooleys auctioneer Michael Garofolo said tightly held properties such as this perform well regardless of market conditions.
“Particularly in Eastwood, lucky number 8 given the demographic we’re dealing with, it doesn’t matter the price. They just want it and I think they know in the fullness of time, property prices will always come back,” Garofolo said.
“If I’m being fair, this is not reflective of current market conditions, this is a standout result.”
It was one of 572 homes scheduled to go under the hammer on Saturday in Sydney. By evening, Domain Group recorded a preliminary clearance rate of 60.2 per cent from 367 reported results, while 96 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Cabarita, a local family dropped $6,075,000 on a tightly held four-bedroom house at 16 Dorking Road with plans of building their dream home.
They outbid 10 other registered bidders, including the underbidders who live on the same street and were hoping to purchase the property for their children. Guided at $5.7 million, the reserve was $5.5 million.
Selling agent Ben Horwood of Horwood Nolan said all interested parties were looking to build a trophy home on the block.
“The top end of the market is still really strong … There is still plenty of money around for good real estate,” Horwood said. “People are unsure to start but, once they get going and can see other people are competing for it, that confidence comes through.”
Another tightly held home went under the hammer in Turramurra, where a local family paid $2,483,000 for 11 Avoca Road as an investment that will eventually become a home for their adult children.
The four-bedroom house, which was guided at $1.9 million, had 10 buyers registered to bid. The auction opened below that at $1.6 million and took a while to reach the $2 million reserve, according to selling agent Matt Bolin of Ray White Upper North Shore.
Once it was called on the market, three buyers fought it out until it sold for $2,483,000.
“It shows that if there are 10 buyers out there and the majority of them weren’t in the marketplace last year, the market is at the right price range,” Bolin said.
Turramurra’s median house price grew 24.5 per cent to $3,115,000 in the past year to June.
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