Investors out in force across Sydney auctions on bumper weekend

Investors were out in force on a bumper auction Saturday in sunny Sydney, re-emerging from the dark to take advantage of the cooling market’s reduced asking prices and less competition.

A one-bedroom unit at 4/14 Kurrawa Avenue was one of 1104 properties scheduled to go under the hammer in the harbour city on Saturday. By evening, Domain Group had recorded a clearance rate of 66 per cent from 672 reported results.

More than a dozen people gathered in its small courtyard, which backs onto the suburb’s main drag, to watch the 69-square-metre property sell for the first time in 23 years.

Bidding opened at $800,000, jumping in $10,000 increments between three active bidders for most of the auction. It came down to two parties by $880,000, then stalled after $885,000 when bidders refused to offer more than $2500 lots.

Selling agent Angus Gorrie and auctioneer Adrian Bo, of McGrath Coogee, spoke with the vendor on two separate occasions to discuss dropping the reserve price from $900,000. 

The beachside property finally sold to Barry McGee, a local Coogee resident and seasoned property investor, for $891,000, which was $1000 above the revised reserve.

“I have bought a number of properties,” Mr McGee said. “We’ve been in Coogee for more than five years. We exited in June last year and we’re looking to get back in.

“The market is coming off a bit, that’s why that’s a solid price. It’s a long-term investment and long-term capital gains. That’s what you’re looking for around Coogee. So it’s a good environment, it’s consistent rent.”

It was a bittersweet day for seller Samantha Barlow when she was single and 27 years old.

“I’m very, very happy with the price,” Mrs Barlow said. “It’s quite emotional for me because I’ve owned the apartment for 24 years. I lived in here for 13 years, then I rented it for 13 years. I absolutely loved living here and it’s wonderful to say goodbye to it with all the wonderful renovations.” .

Mrs Barlow, who bought the unit for $189,000 in 1994 said she had made a lot of sacrifices to save for a deposit, including not owning a car or going on overseas holidays.

Now living in Hunters Hill with her husband, she said she plans to reinvest in more property.

The successful sale was put down to a realistic vendor and a freshly renovated unit in an art deco building just a stone’s throw from Coogee Beach, according to Mr Gorrie.

“The reserve was $900,000, so we had to come down a bit to get across the line,” he said. “The owner was very realistic and ended up bringing down the reserve to $890,000 then we had a bid at $890,000 and got that extra thousand.

“No parking probably stopped it from going to that next level. It obviously had the garden and ticked the rest of the boxes, but for a one-bed, one-bath, I mean $891,000 is getting up there. It was a good price and certainly market value.”

Meanwhile, in neighbouring Bondi Beach another one-bedroom, one-bathroom unit was also nabbed by local investors.

The winning inner-west couple battled it out with another bidder, also an investor. The auction kicked off at $1,050,000, increasing in $10,000 increments.

The property, which has waterfront views, sold for $1,325,000, which was $125,000 over reserve, through Simon Nolan of McGrath Maroubra.

In Neutral Bay, another one-bedroom, one-bathroom apartment sold to an investor for its reserve price of $720,000. Two investors bid on the property in $10,000 rises after an opening bid of $640,000. The property sold through Jesse Zammit of Belle Property Neutral Bay.

Elsewhere in Sydney

SOLD $2,380,000
North Epping
211 Malton Road
4 bedrooms, 2 bathrooms, 2 car spaces

Two bidders fought it out for this 736-square-metre renovated Californian bungalow in the leafy suburb of North Epping. The opening bid of $2.06 million was “above expectations”, said selling agent Catherine Murphy of The Agency North. It increased from there in $20,000 lots for roughly 50 bids until it sold for $2.38 million  to an upsizing North Epping family. The house, which last traded for $450,000 17 years ago, fetched $180,000 more than reserve. 

211 Malton Road North Epping

See more at: domain.com.au/2014211225

SOLD $1,075,000
Eastlakes
20 Universal Street
2 bedrooms, 1 bathroom, 1 car space

While more than 30 people gathered in the backyard of the freestanding house for the auction, only one of two registered bidders participated. Bidding kicked off at $1 million and the sole bidder then increased bids against himself before the property passed in at $1,050,000. The property failed to reach the reserve of $1.1 million but sold shortly after the auction in negotiation to the bidder, a local investor who has other Eastlake properties. Selling agent Chris Skarlatos of Laing+Simmons Roseberry said the vendor was retiring and relocating to Ireland to be with family. The property last traded in 2012 for $700,000.

20 Universal Street Eastlakes

See more at: domain.com.au/2014215080

SOLD $5,311,000
Birchgrove
29 Louisa Road
5 bedrooms, 3 bathrooms, 2 car spaces

This double-brick home, owned by retired banking executives,  last sold 18 years ago for $1.1 million.  Five balconies have since been built to take advantage of the harbour views. Selling agent Lynsey Kemp of Belle Property Balmain said  the crowd was spilling out onto the home’s courtyard to watch the auction of the tightly-held property. After an opening bid of $5 million, bidding between the four active bidders increased by $50,000 and $20,000 increments. It sold for for $5,311,000, $311,000 more than the reserve, to a buyers agent representing a local man. Mrs Kemp said there had been strong interest from families living in the suburb.

29 Louisa Road Birchgrove

See more at: domain.com.au/2014202877