Fire-ravaged terrace in Redfern sells for $1.6 million at auction

You know Sydney’s inner-city market is still hot when you see buyers madly competing for a property where the only decoration is caution tape.  

About 50 people squeezed into the courtyard of 761 South Dowling Street, Redfern, to watch as the four-bedroom fire-ravaged terrace – which one attendee described as “petrifying” – went under the hammer. 

With buyers rushing to sell before Easter, it was one of about 1130 auctions scheduled, making it the the city’s busiest weekend on record.     

The previous record was also set on a pre-Easter weekend – in March 2015, when 1128 homes went under the hammer.

By Saturday evening, Domain Group had collected 814 results to put the clearance rate at 80.9 per cent. “It’s another remarkably strong result for the Sydney market, despite an all-time record-breaking auction super Saturday,” Domain Group chief economist Andrew Wilson said.

Bidding for the Redfern terrace, which needs a new roof and serious renovations throughout, started at $1 million, increasing in $100,000 bids until it reached $1.3 million.

After that the bidding jumped in increments ranging from $50,000 to $10,000 as four of the 12 registered bidders competed for the property, located on a busy main road. 

Despite interest from owner occupiers, it was an investor from the eastern suburbs who snapped up the terrace for $1.6 million – $125,000 over the reserve. Despite its condition it sold above Redfern’s median house price of $1.53 million.

Selling agent Mark Dawes of Richardson & Wrench Alexandria/Waterloo, said the result was above expectations but he wasn’t surprised given the current strength of the market.

“It’s certainly a raw property … the roof needs to be replaced, upstairs needs to be redone completely,” he said. “The two front rooms downstairs are the only ones it makes sense to keep.

“It needs a lot of work, but it’s got a good footprint.”

The underbidders were a local couple from Redfern who wanted to transform the property into their dream home.

“We knew the end result would be impacted by how much people thought they’d have to spend to fix it up,” said Kenneth, who declined to give his surname. 

“We estimated we’d have to spend about $700,000 for the work we’d want to do to the place, but if you thought you could do a decent reno for $500,000, then you’ve got more money to bid with.”

The home last traded for $275,000 in 1994.

Vendors Craig Mills and Jamie Buckley were asleep on the night the house went up in flames last October.

The fire alarm failed to go off after the blaze – believed to have been started by a candle – started in the bathroom. 

The pair say it was their chihuahua Quondo who saved their lives.

“He made his way upstairs, past the flames and got us,” said Mr Mills. “We got him and other dog and got out of the house, after that the upstairs just erupted into flames.”

Due to the extensive damage throughout the home the pair decided to bring forward their plans to sell and relocate interstate by a few years. 

“We deliberately chose to auction this weekend, as we wanted to get in before Easter, while the markets is still strong.”

 Auctioneer Graeme Hennessy said it was the busiest pre-Easter weekend he had ever seen, and noted he already had a solid number of bookings up until May.

“We’re seeing huge numbers,” he said. “I think its because we’ve got people in the western suburbs, who would have never generally gone to auction before, starting to go to auction as well because they’re seeing good results.”

The upstairs bathroom where the fire started. Photo: Anna Kucera

In neighbouring Surry Hills a dilapidated terrace – also in need of some serious work – sold for $2,111,000, $111,000 over reserve. 

Bidding for 102 Reservoir Street started at $1.8 million and went up in $50,000 and then $10,000 and $1000 increments as two investors battled it out for the deceased estate.

“It was a strong result and pretty good representation of prices in this location,” said selling agent Michael Kirk of BresicWhitney Darlinghurst. “We’ve got a fully renovated terrace nearby on the market at $2.4 million – and this has sold for not even $300,000 less despite the work that needs to be done.”

This dilapidated deceased estate in nearby Surry Hills sold for $2,111,000. Photo: Supplied.

The home, in need of some serious work, sold for $111,000 over reserve. Photo: Supplied.