First-home buyer narrowly misses out on Rozelle terrace that sold for more than $2.3 million

A first-home buyer narrowly missed out on a spacious renovated home in Sydney’s inner west that sold for more than $2.3 million under the hammer on Saturday.

A queue formed outside the Victorian terrace in Rozelle as dozens crammed in to watch the auction action.

Once everyone huddled into the small backyard, bidding opened at $2.1 million for the four-bedroom property in Sydney’s inner west.

Six of the 11 registered bidders vied for the keys to 548 Darling Street, enough competition to see the auction drag out for more than 10 minutes.

Across the city, buyers have been flocking to homes seen as good value in the cooling market. The property was one of 581 auctions scheduled for Sydney this weekend.

By evening, Domain Group had recorded a 64.5 per cent clearance rate from 320 reported results.

Incremental bids of $25,000 at the outset soon whittled down to $1000 and $500 bids as it became a two-horse race between a buyer’s agent for an expat and a first-home buyer.

The expat walked away with the keys to the house after the hammer fell at $2,326,000 – selling $26,000 above reserve. It was guided at $2.15 million throughout the auction campaign and last sold for $1.13 million in 2007.

The median house price in Rozelle is $1,585,000, down four per cent in the past year.

But units in the same suburb have increased by 12.4 per cent, reaching a median price of $1,362,500.

The underbidder, who was trying to get onto the property ladder, believed his competition paid more than he had expected.

“I think they got away with good value. I think it was probably more than it was worth. It’s well presented, it’s done up, it’s ready to move in,” said Sam, who did not want his surname to be disclosed.

He has been looking to enter the property market for the past eight months and is willing to wait until he can nab the right first home.

“There’s pockets of value … and more stock is coming onto the market, I think you can afford to be patient,” he said.

Auctioneer Damian Cooley said the buyers did not overpay for the home as it was a fair result for the sought-after real estate.

“There’s definitely a flight to quality. Buyers are really looking for the best homes in the market, the best apartments in the market,” he said.

Mr Cooley said despite strong bidding it was no easy feat as buyers were nervous and looking for other people to make the first move, although they could see good value on offer.

“There’s a lot of nervous energy at auctions, but I do feel while there isn’t necessarily any pick-up in pricing right now, there is a pick-up in sentiment.”

Selling agent Peter Gordon of Cobden & Hayson said strong registration numbers and bidding may be early signs of better days ahead.

“It was a great sign for the local market. We haven’t seen that many buyers registered at an auction for the last six months,” Mr Gordon said.

Meanwhile in Surry Hills, a two-bedroom apartment on 36/45-49 Holt Street sold for $1,002,000 to an investor.

But the owner recorded a loss on the property, which last sold for $1.1 million in 2016.

Selling agent James Ledgerwood of The Agency Eastern Suburbs said there were two other young professional couples who provided strong competition, with the home finishing $2000 above reserve.

On the upper north shore, a deceased estate in Beecroft passed in at $1.75 million after two bids from the same party despite seven other registered bidders.

The tightly-held but run-down four-bedroom house on 96 Sutherland Road was on the market for the first time in more than four decades. It last sold for $59,000.

Selling agent Douglas Macarthur of Ray White Beecroft said “everyone kicked the ground” as the auctioneer called for bids.

“The reserve was $2.2 million but the owners were flexible on price and willing to negotiate but it was too far apart,” Mr Macarthur said. He expects it to sell soon.