Newly built duplex in Drummoyne sells for $2.57 million - $20,000 above adjusted reserve

A hot, sunny morning helped to draw crowds to auctions across Sydney on Saturday but it didn’t translate to an uptick in sales, with the city’s clearance rate falling to 44 per cent.

In the inner west, more than two dozen people gathered in the backyard of a duplex going under the hammer at 6A Wrights Road in Drummoyne. Even the neighbours peered over the fence with interest.

Auctioneer Robert Skeen was initially met with a minute of silence after calling for an opening bid, but was eventually offered $2.4 million for the newly built, four-bedroom house.

A second bidder put in a counter offer of $2,425,000 before the price jumped to $2.5 million. From there, it went up in increments of $25,000, $10,000 and $5000 between two bidders until it hit $2.55 million from an unexpected third registered bidder.

Mr Skeen shouted in relief that finally more bidders were “coming out of the woodwork”, while selling agent Joel Hollis of Warwick Williams Real Estate consulted the vendors and began negotiating on the auction floor.

After some back and forth, the third bidder offered $2.57 million, which was where the hammer fell – $20,000 above the reduced reserve of $2.55 million.

“It’s a good result in this market because a lot of the properties aren’t selling at auction and you’re lucky to get one or two bidders, so to have four registered and three active, it’s really good,” Mr Skeen said.

He put the successful auction down to Mr Hollis being transparent about the property’s price and value.

“It was important to price it well and tell the buyers they’re in the range – [Mr Hollis] has been indicating $2.5 million and $2.6 million all along – especially because it is so price sensitive at the moment”.

Set on 348 square metres of land, the duplex – built by a local owner-builder – exceeded Drummoyne’s median house price of $2 million, which has taken a 6.1 per cent hit in the past year, but recorded a whopping 77.6 per cent increase in the past five years.

The property was bought for $2.8 million in February 2017 before it was subdivided into two lots.

It was one of 643 scheduled auctions for Sydney on Saturday. By evening, Domain Group had recorded a 44 per cent clearance rate from 334 results.

Mr Hollis said while it had been a slow start to the auction, the eventual interest and action had been “unusual in today’s market”.

He said the home had attracted strong competition because it was the first newly built house offered in Drummoyne for more than two years.

He said the vendor now had a better appetite to put the neighbouring duplex on the market based on Saturday’s result.

Meanwhile, across the river in the lower north shore, a three-bedroom apartment on 3/196 Longueville Road in Lane Cove sold under the hammer $10,000 above the unadjusted reserve.

A vendor bid of $1.5 million opened the auction, which had a sole registered party.

The downsizers put in a counter offer of $1.51 million to seal the deal. It surpassed the suburb’s unit median of $823,000.

“If we had competition it could have been stronger, but to sell under the hammer is a great result in today’s market. Confidence in the market is stopping buyers,” said selling agent Karl Ferguson of McGrath Lane Cove.

The property last sold for $765,000 in 2002.

Elsewhere in Sydney

SOLD $862,000
Marrickville
11/384 Illawarra Road
2 bedrooms, 2 bathrooms, 1 car space

The five registered parties vying for the keys to this 77-square metre property were all first home buyers. Bidding opened at $725,000 and went back and forth between two active bidders until the hammer fell at $862,000. Adrian Tsavalas of McGrath Newtown said the vendors set a “very reasonable” reserve of $790,000. The property last sold eight years ago for $515,000. The suburb’s median unit price is $728,000.

See more at domain.com.au/2014680256

PASSED IN
Newport
2/30 Ross Street
3 bedrooms, 1 bathroom, 1 car space

The deceased estate had been held by the same family for about 40 years, but the vendors were adamant to sell on auction day. Investors made up the majority of buyers interested in the beachside apartment but only one registered on auction day. Selling agent Kelly Mulvihill of Shores said the whole block of apartments had “a real holiday vibe” and it appealed to those who wanted to would use it as a weekender or lease it out as short stay accommodation. However, it passed in without a single bid. The 106-square-metre property last sold almost 19 years ago for $451,000. The suburb’s median unit price is $812,000.

See more at domain.com.au/2014681772

PASSED IN
Mosman
6/162 Raglan Street
1 bedrooms, 1 bathroom, 1 car space

The vendors, selling to relocate interstate, set a “fair reserve” of $670,000, according to selling agent Stephen O’Sullivan of Marriott Lane Real Estate.  Almost two dozen groups inspected the property yet only one party, a first home buyer, registered. It passed in with no bids. Mr O’Sullivan said “people are sitting on their hands” despite the property being great value for money because a car space was included, a rare thing in Mosman. The property last sold for $525,000 almost 4 years ago. The suburb’s median unit price is $1.05 million.

See more at domain.com.au/2014699082