Queensland couple outbid Sydney buyers for $3.3 million Surry Hills terrace

An inner-city terrace sold for $700,000 above reserve in a hot auction which saw a Queensland couple outbid more than a dozen local buyers.

About 100 people turned out for the Saturday auction of the Surry Hills terrace, split into two apartments, just steps from the new light rail line and Bourke Street Bakery.

It was one of 283 Sydney properties scheduled to go under the hammer on Saturday, one of the quietest auction days of the year so far.

By 6pm, Domain had recorded a clearance rate of 73.8 per cent from 193 reported auctions.

Auctioneer Gavin Croft was kept busy from the get-go. Bidding on 625 Bourke Street started at $2,325,000 and almost climbed a further $1 million before the hammer fell.

Eight of the 14 registered bidders — who were mostly investors — threw their hat in the ring, quickly passing the $2.6 million reserve as they traded everything from $10,000 rises to $100,000 knock-out bids.

An investor couple from Darlinghurst looked to have won the day at $3.25 million, until a couple from the Sunshine Coast offered an extra $50,000, pushing the price to $3.3 million – at which 139-square-metre block sold.

The result was well above the suburb’s median house price of $1,606,000 and unit price of $847,000.

“I’m feeling we paid too much, but we had an emotional attachment,” said buyer Mary, who did not want to disclose her surname, after the auction. She and her partner, Bruce, only viewed the property for the first time on Friday, after flying in from London.

Mary said the outdoor terraces and the light rail, which will soon be running down nearby Devonshire Street, had been big drawcards for the couple who were previously based in Sydney and own another property down the street.

They plan to use the ground floor two-bedroom apartment as their “cultural weekender” and rent out the three-bedroom apartment upstairs, which has two balconies and a rooftop terrace.

The Melbourne-based owners were over the moon with the result, said selling agent Michael Kirk of Bresic Whitney Darlinghurst, and pleased with their decision to hold off selling until the light rail was almost complete and the election done and dusted.

The terrace, which records show they purchased for $560,000 in 2001, was an investment property and previously home to their Sydney-based son.

Mr Kirk was surprised by the result and put the terrace’s popularity down to its dual-income potential, prime location, the looming completion of the light rail — due to open in December — and the property’s multiple terraces and freestanding north side.

“[But] I wasn’t surprised [by the strong investor turnout], given how low interest rates are people with money would rather put it back in real estate, that’s what I’m hearing in conversations with buyers,” he said.

“Those buying apartments see Surry Hills as a good spot to park their money, with the light rail nearing completion.”

Mr Kirk said low levels of stock meant good properties were seeing strong interest. While he did not expect stock levels to pick up anytime soon, he is expecting a strong back end of the year for prices, with open for inspection numbers on the rise and more urgency from buyers, who fear they could miss the bottom of the market.