South Coogee block bought in 1972 for $29,400 sells for $5.48 million at election day auction
You would be forgiven for thinking it wasn’t election day as more than a hundred people turned out for the auction of a tightly held house at South Coogee.
Buyers seemed undeterred as a dozen groups registered to bid on the full-brick home at 29 Fowler Crescent, an unusually high figure given the market has fallen into a lull in recent weeks.
The home was one of 317 properties scheduled to go under the hammer in Sydney on election day. By evening, Domain Group recorded a preliminary clearance rate of 63.9 per cent from 208 reported results, while 49 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Ray White NSW chief auctioneer Alex Pattaro was met with silence when he called for an opening bid on the brisk Saturday morning against an ocean backdrop.
After a few moments, an offer of $4 million started the auction, which had no price guide during the campaign.
Four parties – all families looking to upgrade – threw their hat in the ring, raising the price in varying increments.
The six-bedroom home eventually sold to a local family for $5.48 million, just $20,000 shy of the reserve.
The vendor’s adult children – all doctors – were thrilled with the result as they were letting go of their parents’ family home of 50 years.
“We were very happy with the price. It’s just sad that it’s going. But it’s good to move it onto the next person. My father knew it was time to move on and help the next generation too,” said Susan Chu, one of the vendor’s six children.
She said her parents purchased the land in 1972 for $29,400 and built the home on it.
The Chus were nervous about their auction being held on election day, but said it turned out very well in the end.
“We were nervous about election day, plus also the climate currently with property prices going down and interest rates going up,” said John Chu, another one of the adult children. “How many people are going to be spooked off because of today being this very busy day?”
The six-bedroom house on 676 square metres was a big draw for a cross-section of buyers, Pattaro said.
“Those top-tier homes are always going to perform and surprise everybody and today’s result was a true reflection of that because it catered to different types of buyers,” he said.
“If there is any push back from buyers it is the fact of interest rates and more stock to choose from, nothing to do with [the] election.”
The property was sold through Phillip Elmowy of Ray White Maroubra and South Coogee, who said not a single buyer mentioned their concern about election day.
Coogee’s median house price rose 20.8 per cent to $3.8 million in the year to March 2020 on Domain data.
In the west, local investors bought a house at 176 Victoria Street, Smithfield for $1.11 million.
Seven parties registered to bid on the three-bedroom property in original condition, which was guided at the reserve price of $1.1 million.
The auction opened at $950,000 as four of the buyers made “short sharp” bids and it was over within minutes, according to selling agent Darko Horvat of LJ Hooker Edensor Park.
“I don’t think they were fazed [with the election], whatever happens life goes on,” Horvat said, adding that interest rates and the cost of living were front of buyers’ minds instead.
“If you asked me two weeks ago, I wouldn’t have known the cost of lettuce. Everyone keeps talking about it.”
Smithfield’s median house price rose 16.7 per cent to $910,000 in the year to March 2022.
In Wetherill Park, a young family bought a three-bedroom house at 9 Binyon Close for $1,316,000.
A dozen parties registered to bid of which five made offers as the auction started at $900,000.
Cooley Auctions auctioneer Michael Garofolo said he felt little reluctance from bidders. “Come Monday, whether the Libs are still in or Labour are. interest rates are still going to go up.”
“Buying and selling is obviously a long-term proposition. You’ve got to accept there is going to be a change in government and interest rates over the 30 years of your loan. People have accepted it and are getting on with it.”
The property last traded for $412,000 in 2003, records show, the price tripling in 19 years.
Wetherill Park’s median house price rose 17.1 per cent to $995,000 in the year to March 2022.
In Cronulla, a one-bedroom apartment changed hands from one investor to another for a tidy paper profit of $122,000 in just a year.
Six parties, including first-home buyers and investors, registered to bid on the property at 7/59 Gerrale Street.
Bidding opened at $800,000 – well below the $900,000 guide – but the price climbed beyond that eventually.
It sold for $962,000 –$12,000 above reserve – to an investor who plans to continue renting it out in the short term.
It last sold for $840,000 a year ago almost to the day, records show.
McGrath Cronulla’s Steve Beattie said it bucked the trend for apartments because it was a beachfront property with investors in the mix.
Cronulla’s median unit price jumped 24 per cent to $1.15 million in the year to March 2022.
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