Historic Darlinghurst cottage sells for $450,000 over reserve in hot auction

It may have got off to a slow start, but the auction of a historic Darlinghurst cottage on Saturday morning ended with a bang, with the property selling almost half a million dollars over reserve. 

A crowd of about 50 gathered in the quiet cul-de-sac outside 5 Darley Place to watch as a local woman outbid two other prospective buyers for the 1830s brick cottage which sold for $2.75 million. 

It was one of more than 760 properties  scheduled for auction on Saturday, 16.2 per cent more than the same weekend last year. 

Though it took almost a minute for auctioneer Damien Cooley to get an opening bid of $2.1 million from the reserved crowd, a bidding war quickly erupted between two of the 11 registered bidders, with the bidding rising in $50,000 increments until it hit $2.6 million. 

It was at that point that the eventual buyer, who was accompanied by her adult daughter, joined in the bidding war. It was her fourth bid, that secured her the property, which was owned by the late arts patron Jane Macgowan for more than 30 years.

“I’m overwhelmed and relieved,” said Ms Macgowan’s daughter, Tempe Macgowan, after the auction. “I didn’t think it would go for such an amount, there was that deadly silence (at the start of the auction) so it really went above my expectations.”

The three-bedroom free standing cottage went well above Darlinghurst’s median house price of $2,002,500, which has risen 23.2 per cent over the past year, according to Domain Group data. 

“We had quite a lot of local buyers who recognised that a free standing cottage in Darlinghurst very rarely comes on to the market,” selling agent Wayne Ihaka, of Raine and Horne Double Bay, said.

“I’ve always said Darlinghurst is a high demand area, it’s what I call an honest suburb, everyone from all walks of life is happy to take to each other; it’s close to the city but it’s still got a lovely community feel … an original suburb that’s finding its second wind.”

Ms Macgowan said that her mother, who was the daughter of Lord (Baron) Richard Casey, the 16th Governor-General of Australia and last Australian to sit in the House of Lords, loved the suburb’s great village atmosphere and proximity to art galleries and cultural attractions. 

The Darlinghurst local said she was shocked by the end result, which was almost 19 times the $145,000 her mother paid in 1984.

“It’s a bit obscene what (houses here) are going for now,” said Tempe. “It’s a bit unrealistic, I can see why people trying to get into the market are finding it very hard.”

Mr Ihaka said the new owner and her daughter were thrilled to have secured one of the suburb’s original homes and planned to move into the property after making some minor changes.

Mr Cooley said that though inner city fringe properties would always be in strong demand due to their location, the result was indicative of a great start to the year.

“It’s early days, but the market has come back with a lot of strength, last weekend’s clearance rate of about 85 per cent, was a boom time clearance rate,” he said.

“We’ve got good stock volume early in the year, which is really encouraging for what’s to come in the market,” he added. “People are seeing good results, and we are taking more bookings than we ever have in February before.”

27 Walter Street, Paddington NSW. Photo: Supplied.

In neighbouring Paddington, an unrenovated two-storey terrace held within the one family for almost 80 years sold for $2,245,000.

Though Imran Hamidi of Laing and Simmons Woollahra wouldn’t disclose the reserve price of the deceased estate, he said the property sold for “significantly above” the set price, thanks to six active bidders keen to snap up the three-bedroom property.

A crowd of about 100 people watched as 27 Walter Street was snapped up by a young local family who plan to renovate the property.

“It’s an unrenovated house, and it sold for the same price a renovated home would sell for, there’s a lot of strength in the Paddington market and the amount of people looking to buy here show it’s still a hot area.”

3/71 Edward Street, Bondi Beach NSW. Photo: Supplied.

Meanwhile, over at Bondi Beach, a bidding war between six of 20 registered bidders, saw a two-bedroom apartment sell for $538,000 more than it did when it last traded in 2013.

“The owners hadn’t changed a single thing,” Sean Poche of Phillips Pantzer Donnelley told Domain after 3/71 Edward Street sold for $1.4 million, $275,000 over reserve.

Mr Poche said it was the highest number of registered bidders he had ever had at a single auction and noted that people were desperate to get into the market.

“People know it’s moving forward, that they may have to pay a little more than they originally anticipated, I remember when I sold this place in 2013 … people thought that was a crazy result at the time and now look where we are.”

Other results from Saturday:

NORTH

1/26 Woolcott Street, Waverton NSW. Photo: Supplied.

SOLD $2.61 million
Waverton 
1/26 Woolcott Street
4 bedrooms, 3 bathrooms, 2 car spaces

Six of 14 registered bidders battled it out for this four-bedroom townhouse which sold for $460,000 over its $2.15 million reserve. The bidding started at $2.2 million and went up in $50,000 increments, before dropping down to $20,000, and then $10,000, increases. It was a downsizer from the inner west who secured the deceased estate with the help of a buyers’ agent. Tom Scarpignato of Belle Property Neutral Bay, who showed almost 200 groups through the property prior to auction, said the location, city views and lift access were big drawcards for the home.

See more: domain.com.au/2013344771

SOUTH

76 Bunarba Road, Gymea Bay NSW. Photo: Supplied.

SOLD $1.6 million
Gymea Bay
​76 Bunarba Road
4 bedrooms, 2 bathrooms, 2 car spaces

More than 100 people gathered to watch this four-bedroom family home go under the hammer. Proceedings got underway with a vendor bid of $1.35 million, before one of the three active bidders jumped in with a $1.36 million bid. Bidding then went up in $20,000, and then $10,000, increments, before a final $15,000 jump put the winning bid at $1.6 million, $100,000 over the reserve. Though Murray Cole of McGrath Cronulla had interest from right across Sydney and even calls from two overseas buyers during the campaign, it was a young family from Illawong who secured the property.

See more: domain.com.au/2013328399

EAST

5 Murriverie Road, North Bondi NSW. Photo: Supplied

SOLD $3,225,000
North Bondi
5 Murriverie Road
4 bedrooms, 2 bathrooms, 3 car spaces

A young local couple beat out two developers to snap up this North Bondi home held within the one family for more than 60 years. While the auction began with a $3 million opening bid from a developer, it was the couple, desperate to buy after missing out on several properties, who made the winning bid of $3,225,000 – $25,000 over the reserve. Mary Anne Cronin of Phillips Pantzer Donnelley showed 80 groups through the property, which drew strong interest from developers looking to subdivide the 484-square-metre block and young couples and families looking to build their dream home.

See more: domain.com.au/2013344940

WEST

28 Francis Street, Enmore NSW. Photo: Supplied.

SOLD $1,455,000
Enmore
28 Francis Street
2 bedrooms, 1 bathroom, 0 car spaces

This semi detached home went for just over $200,000 over the $1.25 million reserve price when it went to auction on Saturday. Four of the 12 registered bidders battled it out for the two-bedroom home after the bidding started at $1.1 million. It was a young couple from Erskineville, looking to upgrade from an apartment, who eventually made the winning bid. Prior to auction day, Braden Walters of McGrath Newton had shown more than 100 groups through the property and issued 17 contracts. Mr Walters said the new owners would be able to move in right away thanks to a lovely renovation completed by the vendors, who are relocating to Melbourne.  

See more: domain.com.au/2013344235