First home buyers and mum splash $1.76 million for Neutral Bay fixer upper

A storm-damaged federation semi in need of a renovation sold for $1.76 million at auction on Saturday, after two first home buyers teamed up with their mum to make the winning bid.

Nine buyers turned out to compete for the rundown two-bedroom semi at 21 Rawson Street, Neutral Bay, undeterred by the damaged ceilings, walls and floors throughout – a result of a hailstorm in 2019.

The property was one of 696 Sydney homes scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary clearance rate of 63.6 per cent from 448 reported results, while 114 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The sale of the Neutral Bay semi, on a 254-square-metre block, was quick to start, opening with an offer of $1.3 million. Three bidders took part, pushing the price up in $50,000 and $25,000 increments, but it was mostly a two-buyer race between the twin sisters and their mother, and the owners of the semi next door.

The under-bidders congratulated their new neighbours after the hammer fell at $1.76 million, $60,000 above the reserve price.

Sisters Lucinda and Maddi, 24, and mother Cath, who declined to disclose their surname for privacy reasons, were delighted with the result, having been looking for a fixer upper for some time. It will be a first home for the sisters, after a renovation.

“It’s a beautiful house with such good bones,” Cath said.

Lucinda felt rising interest rates, and building costs, had reduced the level of competition seen for such properties, and made it possible for the trio – who already had their finance approved – to secure the home.

It was a bittersweet moment for seller Will Hughes, who purchased the property with his wife for $49,000 in 1979.

The couple were sleeping in their bedroom when the roof was damaged in a storm and the ceiling collapsed on them in 2019. Unfortunately, their insurance had lapsed, and the couple moved out of the damaged home, then later relocated to the Southern Highlands.

Selling agent Rod Marr of Mosman First National said it was a pleasing result, given the difficult market and rising building costs.

“We weren’t sure where the property sat price-wise in this market, particularly with the X factor of what is it going to cost to make it liveable, and how long is that going to take? That was why people were getting stuck on working out what price they may have interest at,” he said.

In Manly, 20 buyers registered to bid on a two-bedroom apartment at 6/25 Cliff Street, which sold for $700,000 above reserve.

Bidding on the Art Deco apartment, which was a deceased estate, began at $900,000, and was slow to start, but picked up speed around the $1.1 million mark. Six parties made offers, pushing the sale price to $1.7 million.

An investor made a final knockout bid of $50,000 to secure the home, outbidding a mix of first home buyers, upsizers and downsizers.

Matt McEwan of McGrath Manly said there had been conservative price expectations for the unit, as an expensive special strata levy was expected in the near future to pay for the addition of balconies at the rear of the 1920s unit block.

In Erskineville, a two-bedroom ground floor apartment with courtyard sold for $1.15 million after the vendor dropped their expectations by $25,000.

Bidding for 8/58 Park Street began at $990,000, and three of the four registered bidders competed, pushing the price to $1.14 million, where it came to a halt.

The highest bidder, a young professional, then increased their offer by a further $10,000, while the seller dropped their initial reserve of $1,175,000.

The apartment, which last traded for $885,000 in 2018, was sold by Duncan Gordon, of Raine & Horne Newtown.

He had seen strong interest in the home, showing 80 groups through the property.

“There seems to be some reasonably good activity … buyers are keen to secure a home still, some are still being somewhat cautious because of the interest rate movements, but I think buyers to a degree are getting used to that,” he said.

In nearby Alexandria, a young family paid $1.75 million for a three-bedroom semi, which last traded for $875,000 in 2010.

Bidding for 372 Belmont Street opened at $1,375,000 and five bidders pushed the price $150,000 above the $1.6 million reserve. The 189-square-metre block sold through Brad Gillespie of The Agency Eastern Suburbs.

In Darlinghurst, a two-bedroom apartment in a converted warehouse passed in on a single bid of $1.95 million, above the $1.8 million to $1.9 million price guide.

Peter Starr said several buyers interested in 209/66-72 McLachlan Avenue had not got their financing sorted in time for the auction, but were looking to talk next week.

The 142-square-metre unit last sold for $1.4 million in 2018.

In Coogee, a three-bedroom townhouse sold for $2.3 million, well above the $1,705,000 it sold for three years ago and $200,000 above the reserve.

Six of the ten buyers who registered to bid on 2/66 Mount Street made offers. The home sold through Nicholas Wise, of Ray White Eastern Beaches, to a young local family.