Lane Cove penthouse passes in with a vendor bid of $1.2 million

It was billed as the best apartment in the building, but a penthouse in Sydney’s lower north shore failed to attract the hot bidding required to sell under the hammer on Saturday.

Buyers cautious of bidding too high in a declining market held back as the three bedroom property at 302a/5 Centennial Ave in Lane Cove drew a crowd of almost 40 people and five registered parties.

An initial opening bid of $1 million by interested buyer Evan, one of two active bidders, was knocked back by auctioneer Peter Matthews who commented: “It’s a bit light”.

The two selling agents had their work cut out for them as they went back and forth trying to stir interest from the registered bidders.

Finally Evan returned with another bid, kicking it off at $1.1 million but subdued bidding between himself another party saw it rise in increments of $10,000 just three more times before it passed in at a vendor bid of $1.2 million.

It fell well short of the reserve of $1.22 million, which was similar to the asking price of a neighbouring unit two doors down that sold for $1,235,000 at the height of Sydney’s property market a year ago. The suburb’s unit median price is $823,000. The property last sold for $991,000 four years ago.

Evan, a first-home buyer hoping to find a place for his growing young family, said the vendor’s expectation was unrealistic for today’s market and was more reflective of prices from at least six months ago.

“The reason I’m not going aggressive [in bidding] is because there is a chance the market is going to slow down [further] so I’m holding back, and also it’s difficult to get finance,” he said.

“Banks are only giving so much and I can only spend so much, even though I’ve got quite significant savings.

“We would have bought it at the price we bid at, but we were pretty much at our limit,” he said, adding they would only walk away with the keys in post-auction negotiations if the vendors were prepared to “come down to where the market is at”.

Selling agent Alex Banning of Raine & Horne Lane Cove was confident the property would sell in post-auction negotiations.

“It was a good turnout, we had a couple of registered bidders but just not the right mix of buyers potentially on the day for the property,” Mr Banning said.

“I think a portion of the market feel they can get a better deal after the auction but it’s not necessarily the case. A lot of the time it passes in and you get more inquiry after the auction and new buyers.”

He said the vendors expectations were realistic and he wasn’t prepared to “give the property away”.

Auctioneer Peter Matthews said buyers were driving up prices in the negotiation process because so many held back until the property passed in before putting in an offer.

“What I’m seeing from an auctioneering point of view is these sort of properties get passed aside, and then they get negotiated on pretty quickly and for a lot more than they get passed in at,” Mr Matthews said.

It was one of 499 listed auctions for Sydney this weekend, with a reported clearance rate of 56.3 per cent.

Meanwhile, in Eastwood, three out of 10 registered bidders vied for the keys to a freestanding house on 14 Richard Avenue.

Bidding started at $1.5 million and went up in increments of $100,000 and $50,000 before slowing down to $10,000 and $5000.

It sold for $1,845,000 — $90,000 above reserve — to a local family who were upsizing.

Selling agent Paul Nees of Ray White Lane Cove said the four-bedroom property was particularly popular: “[Because of its] proximity to Eastwood village, it was very desirable.”

“It’s a standout result. Properties that tick all the boxes sell very well, particularly flat blocks close to public transport and amenities. [They] are still proving very popular,” Mr Nees said.

Elsewhere in Sydney

SOLD $1.27 million
24/29 Holtermann Street
Crows Nest
2 bedrooms, 2 bathrooms, 1 car space

This 15-year-old unit attracted more than 85 groups through the property and three bidders on auction day. The range of interested buyers were mainly a younger demographic looking to upsize. A father and daughter duo walked away with the keys to the property after bidding opened at $1.15 million. It went up in increments of $10,000 and $5000. Selling agent David Buttel of Raine & Horne Neutral Bay said the vendors were pleased with the result as it sold $70,000 above reserve. It last sold in 2015 for $980,000. The suburb’s unit median price is $777,500.

24/29 Holtermann Street, Crows Nest. Photo: Supplied

See more at domain.com.au/2014529714

SOLD $830,000
5/80 Hampden Road
Russell Lea
2 bedrooms, 1 bathroom, 2 car spaces

A vendor bid of $820,000 kicked off this auction. Negotiations were made on the floor with the sole registered bidder until the hammer fell at the $20,000 reduced reserve price. Selling agent Chad Egan of Cobden & Hayson Drummoyne said the second bidder didn’t show up because their “finance wasn’t ready in time.” The property last sold five years ago for $581,000. The suburb’s median unit price is $850,000.

5/80 Hampden Road, Russell Lea. Photo: Supplied

See more at domain.com.au/2014529300

SOLD $1,115,000
85 Carlingford Road
Epping
3 bedrooms, 2 bathroom, 2 car spaces

There were four registered parties for this house set on a 436 square metre block of land. Half threw in their hat when the bidding opened at $975,000 and began increasing by $5000. Selling agent  Wayne Vaughan of McGrath Epping said it was a “long auction but a great result”, as the hammer fell $70,000 above the reserve of $1,050,000. The successful buyer was a local couple who were downsizing. The property last sold for $690,000 in 2010.

85 Carlingford Road, Epping. Photo: Supplied

See more at domain.com.au/2014521569