Neighbour forks out $1,435,000 to nab Mosman townhouse after 'cheeky' opening offer

Silence is the last thing you want at an auction. But that’s all that there was on Saturday morning, when a Mosman townhouse went under the hammer.

Despite more than 100 groups inspecting the three-bedroom home, only a dozen people turned up for the auction of 1/14 Avenue Road.

There were five registered bidders among the small crowd, but auctioneer Thomas McGlynn of The Agency had his work cut out for him.

“And the peaceful surrounds … well they come in right on cue,” he said after his calls for an opening bid were met by little more than the sound of birds chirping.

It took more than three minutes for a bidder to break the silence, with a neighbour on the phone making a bid of $1 million. It was knocked back by Mr McGlynn, who called for her to start at $1.2 million.

“No, I’ve been told not to at this stage,” she responded, before noting a neighbouring two-bedroom property has sold for a similar amount in recent months.

It was another two minutes before a different house hunter jumped in with an offer of $1.2 million. A third bidder hit back with an offer of $1.25 million and the race finally kicked off.

The bidding climbed in $25,000 increments as the pair went back and forth, with the neighbour jumping in with a bid bang on the reserve price of $1.35 million.

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The price was pushed up another $85,000 before the neighbour snapped up the townhouse as an investment property for $1,435,000.

“Working in this market, it’s not easy,” said selling agent Jon Snead of The Agency North. “[Despite] nearly everyone at the auction being registered to bid, it was a slow burn, with a very cheeky offer to start.”

Mr Snead said he had never had to negotiate with so many parties just to get an opening offer, and said buyers were increasingly holding back at auction.

“In this market you can’t pick it,” he said, noting the townhouse had drawn strong buyer interest as there are few townhouses in the area. It was also an opportunity for buyers to get into Mosman for well below the suburb’s median house price of $3.5 million.

“I was thinking we might not reach reserve, or might have to make a vendor bid, but that didn’t happen,” he said.

Buyers are at a point where they feel they can negotiate a little more aggressively, added Mr McGlynn.

“That’s part and parcel of the current market,” he said. “It’s what the best buyers and the more experienced buyers are doing.”

Vendors Fiona Duncan and Greg Quick were too nervous to watch the auction, but had a friend reporting back to them on the phone.

“I don’t normally smoke that much, but I think I smoked three cigarettes in the time it took to sell,” said Mr Quick.

While the pair, who are relocating to the Sunshine Coast, were pleased with the result, it was $35,000 short of what Mr Quick hoped it would sell for.

“It was unreal banana peel,” Mr Quick said. “But I was thinking it would sell for $1.47 million. We bought it for $735,000 [in 2006] and I thought that in 12 years it should double, that was the dream.”

The Mosman townhouse was one of 406 Sydney properties scheduled for auction on Saturday, well down on auction numbers in recent weeks. By evening, Domain Group had recorded a clearance rate of 61.3 per cent from 222 reported results.

“The big reason auction numbers are down is that we’re in an odd period, Easter fell short of the school holidays, which have now arrived, so it’s a little quiet,” Mr McGlynn said.

As Sydney has traditionally been a very seasonal auction market, he expected auction numbers to pick back up in May. However he added many properties would continue to sell prior, as lower clearance rates in recent months meant more owners were accepting early offer rather than risking going to auction.

A few suburbs away in Artarmon, a two-bedroom deceased estate held by the one family for more than 100 years passed in without a single bid.

Selling agent Scott Hoddinott of Belle Property Chatswood said six parties registered to bid on the 470-square-metre block, and five wanted to negotiate afterwards.

He expected the property at 30 Muttama Road to sell in the coming days and said they would be accepting offers from the reserve price of $1.9 million.

Meanwhile on the Northern Beaches, a four-bedroom house in Newport sold for $270,000 above reserve.

Three downsizers competed for the keys to the renovated house at 77 Prince Alfred Parade, which records show last sold for $1.65 million in 2014.

The 493-square-metre block sold through James Baker of McGrath Avalon for $2.77 million.

Elsewhere in Sydney

Toby Llewellyn of Cooley Auctions prepares to sell a one-bedroom apartment at 10/12 Hazelbank Road, Wollstonecraft, under the hammer. Photo: Supplied.

SOLD $852,0000
Wollstonecraft
10/12 Hazelbank Road
1 bedroom, 1 bathroom, 1 car space

A first-home buyer couple dug deep to outbid an investor for this 64-square-metre apartment which sold for $137,000 above its $715,000 reserve. A whopping 14 people registered to bid on the tightly held property. The bidding kicked off just below reserve at $712,000, and climbed in $10,000 and $5000 bids for most of the auction. While six parties made offers, by the time bidding got close to the $800,0000 mark, only two were left standing. The property, which last traded for $148,000 in 1991, sold through Scott Robertson of Balmain Realty.

22/40 Maria Street, Petersham. Photo: Supplied

SOLD $690,000
Petersham
22/40 Maria Street
1 bedroom, 1 bathroom, 1 car space

First-home buyers were no match for an investor who snapped up this apartment for $30,000 above reserve. While three first-home buyers turned out to bid, only one made an offer, going head to head with the Strathfield investor. The bidding started at $590,000, went up in $10,000 jumps until $650,000 after which it slowed to $5000 jumps until the property sold. Selling agent William Pereira of BresicWhitney Glebe had shown more than 60 groups through the property, most of who were looking for their first property. The apartment last sold for $530,000 in 2013.

17 Wolfe Road, East Ryde. Photo: Supplied.

SOLD $1.38 million 
East Ryde
17 Wolfe Road
2 bedrooms, 1 bathroom, 1 car space

Four bidders pushed the price of this 1950s weatherboard house $80,000 above reserve. Bidding started at $1 million and climbed in $50,000 increments, only slowing after it hit the $1.3 million reserve. A local buyer, who hadn’t seen the deceased estate prior to auction day, looked set to nab the house for $1,366,000, before another local family placed a knockout bid, bang on the $1.38 million price guide. Selling agent Kathleen Synnott of BresicWhitney Hunters Hill said the family would knock down the house to build their dream home. 

6/39 Battersea Street, Abbotsford. Photo: Supplied.

SOLD $1,505,000
Abbotsford
6/39 Battersea Street
2 bedrooms, 2 bathrooms, 2 car spaces

It was a two-man race for this top-floor apartment with water views. Bidding on the property started at $1.35 million and jumped in $25,000 increments as a buyer’s agent and a local couple went head to head. The bidding slowed right down to $1000 increases before the hammer fell slightly above the $1.5 million reserve. The apartment sold to the buyer’s agent, who was representing a buyer from nearby Five Dock. The result was more than double the $620,000 the apartment sold for in 2008. It sold through Chad Egan of Cobden & Hayson Drummoyne.