Properties in prized pockets perform well at weekend auctions as vendors 'stick to their guns'

Property sellers held out for their asking prices at Sydney’s weekend auctions – and, in prized pockets of the city, many got what they wanted.

But, with the weekend auction clearance rate sinking to 49.6 per cent from 304 reported auctions, it’s clear that some buyers think they can snare a better deal by not bidding at auctions and negotiating to buy passed-in properties.

Even so, in-demand areas fared relatively well on Saturday.

In North Bondi, Phillips Pantzer Donnelley had no trouble finding a buyer for a renovated home on a corner allotment.

There were four registered bidders, three of whom took part in the auction. The three-bedroom property attracted an opening, genuine bid of $2.5 million, and sold under hammer for $2.735 million, $35,000 above reserve.

Tracey Chandler, a buyer’s agent who specialises in the eastern suburbs, said every property being listed in the area was selling, and there were opportunities for vendors to offload houses and apartments for strong prices.

“A lot of vendors are sticking by their guns on price and they are getting what they wanted,” Chandler said.

“There is not a great deal of properties on the market in the eastern suburbs – people are holding off to see what happens.”

Auctioneer Damien Cooley sold all three properties he auctioned on Saturday.

One period cottage in Petersham drew three active bidders, and sold through Cobden & Hayson for $1.25 million, right on the reserve.

“I thought that was a really fair price – it wasn’t a huge price, but it wasn’t cheap, either,” Cooley said.

“The property was a little bit wider than a normal semi, so it had off-street parking and a decent-sized backyard.”

In nearby Annandale, Belle Property sold a two-bedroom, freestanding house on 144 square metres.

This property drew four registered and two active bidders. It sold under the hammer for $1.39 million, well up on the $1.3 million reserve.

Selling agent Michael Hallit said buyers favoured the home because of its location and city views.

He said the above-reserve result showed that quality homes, even in a trying market, were still performing well.

Domain Group data for the weekend shows that 550 properties were listed for auction sale and 93 of these were withdrawn.

During the week, the preliminary 50.8 per cent clearance rate for the weekend of October 6 and 7 was revised down to 44.1 per cent when “straggler” results were tallied. A similar downward revision is likely for this weekend’s auction results.

Seasoned agents say the Sydney market has been gripped by a “herd mentality in reverse”, in which would-be buyers see other people refrain from bidding at auctions, and so they do the same.

It’s a polar-opposite auction landscape to the boom-time conditions of 2016 and early 2017 when four or five parties would routinely bid, prompting others to join in.

Mr Cooley said some buyers needed to remember that vendors were in control of selling.

“The person selling the property has the title deeds to the house,” he said. “It’s their home, so, ultimately, they hold the decision-making card to say, ‘Yes, we sell,’ or ‘No, we don’t.’”

Sydney’s top sales this weekend included a three-level contemporary Strathfield house which sold for $4.35 million through R&W Strathfield. The property, on 700 square metres, has five bedrooms, a home theatre and a wine cellar.

In the north, a large Federation house in Manly fetched $3.7 million through Clarke & Humel, while a North Curl Curl home sold for $2,235,000 through LJ Hooker Freshwater.