Sydney auctions: Carlton apartment passed in at $700,000 after first-home buyers reach limit
First-home buyers on a strict budget battled it out for a two-bedroom apartment in Sydney’s south on Saturday but it passed in at $700,000 when the vendor refused to budge on their reserve.
The property at 2/13 Mill Street, Carlton attracted a large crowd of more than 40 people on the rainy morning, with the auction moved indoors.
It was one of 441 scheduled auctions in Sydney on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 64.3 per cent from 255 reported results, while 67 auctions were withdrawn.
All but registered parties were asked to leave the home before the sell-off got underway.
Still, with 10 bidders and their family or friends present, there were about 30 people dotted around the apartment.
An opening offer of $600,000 started the auction, rising in $10,000 increments between the three active bidders.
There was just one buyer left when the price hit $700,000 but the sell-off stalled, falling $40,000 short of the vendor’s reserve. The buyer refused to bid against themselves and the property was passed in.
McGrath Brighton-Le-Sands selling agent Marc Gable said some buyers were struggling to gain unconditional loan approvals.
“The auction didn’t go exactly to plan … for some people to get their finances in order, it’s proving to be difficult so having a for sale environment gives them that opportunity to participate.”
Mr Gable said two interested buyers placed offers straight after the auction as their loans were subject to valuation, which he said the vendors knew about.
“If you have one or two of your strongest not able to compete at your auction then your result is less than expected,” he said. “In the past three to four weeks it’s been quite common.
“We’ve had quite a few properties where we have passed it in on the day and we’ve been able to sell it a week or two later for a higher price so we’re quite comfortable with today’s decision.”
He also said that he wanted to maintain social distancing: “I made a point to move people outside and we only allowed those registered and those buying with them in there. We were certainly maintaining social distancing.”
The property last sold for $496,500 in 2011.
In Carlingford, more than 70 people, including seven registered parties, turned up to watch a tightly-held house at 13 Mulyan Avenue go under the hammer.
Bidding for the four-bedroom property opened at $1.3 million, rising in varying increments between the five active bidders.
The hammer fell at $1.8 million – selling for $200,000 above reserve to a first-home-buyer couple from Auburn.
The Agency North selling agent Catherine Murphy said the socially distanced crowd were spread out over the 904-square-metre block.
“It was an energetic and fierce auction. I was surprised to see as many people out at auction, especially because it was raining,” Ms Murphy said.
“I feel like Sydneysiders are back in the swing of watching auctions as a sport.”
She said she had noticed a shift in the urgency of buyers who were once waiting on the sideline.
“They realise there is no slow up of our market,” Ms Murphy said. “I was hearing it like a chorus [we will wait] but now that’s stopped.”
In Lilyfield, a four-bedroom house at 82 Piper Street attracted a large crowd of about 100 people and 12 registered bidders.
Bidding for the 471-square-metre block opened at $2.8 million – already $50,000 above the reserve – with the price pushed higher thanks to four active bidders, all from the inner west.
The property sold for $3.17 million to a local family who were upsizing.
BresicWhitney Balmain’s Andrew Liddell said it was a strong result.
“It is a very good result. It is the quintessential long-term family home and a lot of people felt if they had to stretch themselves to get an A-grade asset it was money well spent,” he said.
“I sold it in 2012. It was popular then and it was popular today and it will be popular when it sells again [in the future].”
The property last traded in 2012 for $1,389,000, the price more than doubling in eight years.
In Newtown, six buyers, including first-home buyers and downsizers, registered to bid on 1 Angel Street.
Bidding for the two-bedroom terrace started at $1.1 million and slowly rose to $1.2 million.
A final winning $50,000 bid knocked out the competition and it sold for $1.25 million to a downsizer from Newcastle.
Ray White Surry Hills, Alexandria, Glebe and Erskineville selling agent Nathan Briggs said buyers were becoming more cautious.
“It’s a great result considering everything going on. We are starting to feel the buyers will be more tentative,” Mr Briggs said. “Going from $1.1 million to $1.2 million was like pulling teeth.
“It took me a good [bit of] convincing to get it started then it was really slow. I think buyers are tentative out there but there are still good results.”
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