First-home buyers out in force, battling it out at Sydney auctions

Sydney’s first-home buyers were out in force on Saturday with aggressive bidding that pushed prices well beyond vendors’ reserves.

Low stock levels, cheap credit and a market that is likely to have already bottomed out motivated first-home buyers to walk away with the keys to properties across the city. 

There were just 324 auctions to choose from in Sydney.

By evening, Domain Group had recorded a 77 per cent clearance rate from 219 reported results.

In Cremorne, a recently renovated three-bedroom apartment at 15/17-19 Grasmere Road attracted four registered bidders – all first-home buyers – and sold for $255,000 more than its last trade just four months ago.

The bidding opened at $1.2 million, barely before the auctioneer could get his words out, according to The Agency North selling agent Jon Snead.

The auction finished as quickly as it started, selling under the hammer for $1,455,000 – $55,000 above the reserve.

“I suspect that a couple of them had Bank of Mum and Dad helping them out,” Mr Snead said. “They’re intent on buying. Money is cheap to borrow, stock’s low and prices are coming back out from this supposed dip we’ve had.”

A similar story played out in Tempe where a three-bedroom house at 56 Union Street drew eight registered bidders to the auction.

But the opening bid of $1,275,000 – which was already $25,000 above reserve – knocked out more than half of the registered parties, according to McGrath Newtown selling agent Adrian Tsavalas. 

The price rose through about 20 bids before the hammer fell at $1.35 million. An Alexandria first-home buyer couple walked away with the keys, outbidding families who were looking to upsize. 

“We’re finding the market is in a very positive state in the local area,” Mr Tsavalas said, adding that it was a standout result in recent times.

It last sold for $520,000 in 2002.

Meanwhile in Bondi Junction, older first-home buyers nabbed the keys to a three-bedroom house at 69 Newland Street for a whopping $1,811,000.

Despite only attracting two registered parties it was enough to push the price up in $10,000 increments after the opening bid of $1.68 million. 

Phillips Pantzer Donnelley selling agent Daniel Cachia said it was a great result for a property without parking.

“It offered a lot of scope to develop by going up and putting a second level,” Mr Cachia said. “Things are picking up across the board … given how cheap money is and lending criteria has been relaxed; that’s made a big impact.”

The house last sold for $1.5 million in 2015.

But in the inner west, one underbidder believed his competition had overpaid for a deceased estate at 186 Darling Street, Balmain.

The run-down three-bedroom property had a guide price of $1.45 million during the campaign and attracted 11 registered bidders.

An opening bid of $1.35 million got the auction underway with five parties throwing their hat in the ring.

It was a fast-paced sell-off, rising in varying increments before it sold for $1.7 million – $150,000 above reserve – to a family who bought it as an investment in the short-term.

Ray White Balmain selling agent Megan Smith said she was surprised at the result, given the property needed some work.

“I think it goes to show … because there’s been a real lack of stock on the market [there are] lots of buyers out and about,” Ms Smith said.

But underbidder Ted, who is a builder, believed it sold for an unrealistic price.

“It went well over what it’s worth. They’re valuing it about $300,000 above what it’s worth when it’s finished on a reno [sic] so they’re valuing it at about $2.1 million to $2.2 million … in five years’ time it’ll be worth that but not right now.”

Down south in Gymea Bay, 16 parties registered to bid on a deceased estate at 93 Coonong Road, which was on the market for the first time in almost 75 years. 

An opening bid of $1 million started the auction, which rose in $50,000 lots, knocking out most bidders until it turned into a two-horse race.

It sold for $1,307,000 – $107,000 above reserve – to a Chatswood family who were investors. 

LJ Hooker selling agent James Mitchell said the property drew a lot of interest for its “resale development potential”.