Sydney auction clearance rate falls to 56 per cent as market cools

Buyers are cooling on the Sydney auction market with clearance rates hitting a new low on Saturday.

Auctioneers calling for bids over blustering winds will likely not be surprised by the city’s eventual clearance rate of 56.4 per cent.

The figure reported by Domain Group on Saturday evening — from 422 auction results — is down on last week’s 62.3 per cent and considerably lower than the 73.5 per cent result reported on the same weekend last year.

Despite low clearance rate, there were pockets of feverish buying activity across the city.

More than 50 people tolerated the rain and cold to watch 48 Preston Ave, Five Dock go under the hammer.

The three-bedroom, two-bathroom property was one of 565 properties scheduled for auction in the harbour city on Saturday.

The opening bid of $1.8 million kicked off a drawn-out, 30-minute auction between four of the eight registered bidders who were vying for the keys of this house.

Bidding climbed in increments of $50,000 and quickly slowed down to $10,000 and $5000.

It came down to two buyers who were neck and neck near the $2.2 million mark until a surprising late addition to the race  raised the stakes by $5000 once and nabbed the house for $2.3 million. It surpassed the revised reserve by $100,000.

Selling agent Fayez Yammine of Devine Real Estate Drummoyne was pleased with the result.

“I thought we’d get a few interested buyers but I was actually surprised considering where the market is at the moment because things are tightening up … especially with lending. I’m actually surprised by the level of interest we’ve had today,” Mr Yammine said.

The successful buyer, who wanted to remain anonymous, is a local and plans to live in the freestanding red brick home.

“They [the vendors] were here from since day dot,” said Mr Yammine, adding of the successful bidders: “I think they’re going to knock down and rebuild or just add another level.”

The property sits on a 440-square metre block and last traded for $1.62 million in 2013.

Auctioneer Peter Etheridge of CBRE Sydney said the auction’s slow burn was a sign of the times.

“It’s pretty tough going. Buyers are getting educated and they’ve got more to choose from and they’re hanging back a bit,” said Mr Etheridge.

While the property sold above Five Dock’s median house price of $1,722,000, house prices in Sydney dropped 2.6 per cent over the March quarter.

Mr Etheridge said the house being positioned so close to the water held it in good stead.

“A cooling market on a cooling day too. Not much of a day to be out sightseeing so I think it’s a good result [in] the present circumstances of the market softening a bit,” he said.

“I’m sure it’s going to be a redevelopment this property, but this location is something that never changes,” he said.

The result even surprised the vendors, who revised their reserve from $2.3 million to $2.2 million during the auction.

“We’re very happy. At the beginning because we were listening to the whole thing we didn’t believe it would get to $2.3 which is great and now we’ve got that [initial reserve] we’re really happy about it,” said vendor Blaire Wong.

Meanwhile, in the city’s east, a young couple purchased their first home for $1,006,000. More than two dozen bids were made on the 120-square metre apartment at 4/110 Spit Road in Mosman.

The two horse race started out on reserve at $850,000 and the young couple battled it out against downsizers. It was tight race that only increased in increments between $10,000 and $500 towards the end.

Selling agent Kirsty Freyer of R&W Mosman/Neutral Bay said the property was in a good spot and had lots of light.

In Balmain a local downsizing couple snapped up a two-bedroom apartment for $1.65 million, $50,000 above reserve. Bidding opened at $1.35 million and moved quickly thanks to the three registered bidders who all threw in their hat.

Selling agent Peter Gordon of Cobden & Hayson Balmain said the vendors sold their investment property because they had moved overseas.

Elsewhere in Sydney

36 Lyne St, Alexandria. Photo: Supplied

SOLD $1.68 million
Alexandria
36 Lyne St
2 bedrooms, 2 bathrooms, 0 car spaces

There were high expectations for a tight auction on this property with seven registered bidders, but the sole active bidder immediately knocked out the competition with a high opening offer of $1.65 million. Selling agent Brad Gillespie of The Agency Bondi Beach said it was a “different tactic and the buyer’s agent was strategic. No one was expecting them to come at that level so it took everyone by surprise.” The buyer’s agent went on to make another two bids before the hammer fell at $1.68 million, a $1000 shy of the initial reserve. The vendors were relocating to their second property on the Central Coast. The property last sold in 1997 for $405,000.

1/9-13 Church St, Chatswood. Photo: Supplied

SOLD $855,000
Chatswood
1/9-13 Church St
2 bedrooms, 1 bathrooms, 1 car spaces

It was “chockers” at this Chatswood auction as 30 people huddled into a 95-square-metre apartment to watch two out of three registered bidders battle. The auction was between two young buyers and a middle-aged investor. But the young couple who kicked off the race with an opening bid of $810,000 eventually walked away with the keys for the house at $855,000. It sold $5000 under the initial reserve. Selling agent Mark Kapterian of R&W Willoughby said the vendors were “very realistic and conscious of the where market was at”. The property last sold for $570,000 in 2011.

8/9 Avenue, Randwick. Photo: Supplied

SOLD $1.1 million
Randwick
8/9 The Avenue
2 bedrooms, 1 bathrooms,1 car spaces

This deceased estate was on the market for the first time since 1983. The opening bid for the 100-square-metre apartment was$920,000, surpassing the reserve by $20,000. It climbed in increments of $10,000, $5000 and $1000 between four of the eight bidders. Selling agent Thomas Health of The Agency Bondi Beach said it was “very competitive and it came down to a two-horse race at $970,000 between an owner-occupier and an investor”. The latter eventually took it at $1.1 million, well above the suburb’s unit median price of $966,000.