Sydney auctions: Developer snaps up Gladesville home for $1,945,000
Sydney’s auction clearance edged down from last week amid the economic uncertainty sparked by the coronavirus outbreak, even as many buyers defied the jitters and dropped huge sums on properties across the city.
There were 644 properties taken to auction in Sydney on Saturday.
By evening, Domain Group had recorded a preliminary clearance rate of 74.7 per cent from 398 reported results. This is slightly lower than the preliminary 80.5 per cent recorded last week, which was revised to a final 74.5 per cent as more results were collected.
The proportion of homes withdrawn from auction held steady, a sign that buyers were willing to go ahead with the sales process. On Saturday 59 auctions were withdrawn, compared with 58 last week.
In one strong result, rapid-fire bidding between a developer and a house hunter pushed the price of a Gladesville home $145,000 above reserve.
A small crowd braved the wet and windy conditions on Saturday morning to compete for the three-bedroom house on the market for the first time in more than 60 years.
Bidding on 18 Swan Street was slow to start, despite six registered bidders hoping to nab the home. It took some encouragement from auctioneer Michael Garofolo, of Cooley Auctions, before an opening offer of $1.7 million was made – by the sole owner-occupier in the crowd.
A developer then jumped in with an offer of $1.725 million and bidding paused, before ramping up again – climbing in $10,000 and $5000 jumps as the pair went tit for tat.
When the developer dropped out — saying “you have to draw a line in the sand somewhere” — another developer took his place. Another 20 bids were made, pushing the price well past the $1.8 million reserve.
The 600-square-metre corner block sold to the second developer for $1.945 million.
“[You’ve got to] wait until the last bid and then bid with confidence,” said Epping buyer Jay Ho post auction. “Give pressure to the other buyer. People don’t know how much you have.”
But Mr Ho says he also felt the pressure, spending slightly more than expected to on the site where he hopes to build a duplex.
The vendors were delighted with the result for the property that was built by their late grandparents and rented out in recent years. Records show it last sold for £3484 and 17 shillings in 1959.
“We’re pleased with the result and turnout ,” said one of the vendors, who wanted to remain anonymous. “Given the weather and public uncertainty around the coronavirus … we’re kind of glad we’re selling this weekend and not in a week or two.”
Selling agent George Agostino of First National Real Estate says he had yet to see any change in the market despite the economic uncertainty.
“I don’t know how much of an effect this coronavirus is going to have, nobody does … but I haven’t seen any effects,” he said. “I’m still getting big numbers turning up to our properties and I think with the uncertainty in the share market people are coming back to [property].
Five of the registered bidders had been developers or builders looking to put a duplex or new homes on the block, which is rented out until May 2021, he said.
Amid the global health crisis, UBS economists warned this week that significant disruption to labour markets from the coronavirus could push the unemployment rate higher, and cut their home price growth forecast from 10-12 per cent annual growth, to 5 per cent.
Domain economist Trent Wiltshire earlier warned a worst-case outbreak of the disease would lead to property price falls, however in a more mild scenario price dips would be modest and temporary.
There was no sign of market jitters at the auction of a Milsons Point apartment that sold for $1.5 million above price expectations.
The luxury three-bedroom apartment at 2/6 Cliff Street, sold for $8 million after a lengthy 45 minute auction in which close to 100 bids were made.
It was snapped up by local buyers, who placed a final $200,000 knock-out bid to secure the keys to the harbourside apartment – purchased for their daughter and her family. The 293-square-metre apartment last traded for $1.97 million in 2002.
The home sold through Nigel Mukhi of Di Jones Lower North Shore. He declined to give the reserve price but said it was in the range of the $6 million to $6.5 million price guide.
In the city’s north-west, more than 120 people gathered for the auction of 9 Barina Downs Road, Bella Vista.
Bidding kicked off at $1.3 million, with seven of the 15 registered bidders — mostly local families — making more than 50 offers on the four-bedroom house.
It was snapped up by an investor from Asquith, with a final $500 bid increase. The home sold through Daniel Sarzano of Ray White Baulkham Hills for $1,516,500 – $166,500 above reserve. Records show it last traded for $620,000 in 2009.
In the city’s eastern suburbs, about 60 people gathered for the auction of a deceased estate at 14 Sully Street, Randwick.
Bidding on the three-bedroom semi started at $2.4 million and climbed in $50,000 jumps to the $2.6 million reserve price – where it stalled, before climbing in smaller increments.
A local builder outbid five other hopeful buyers to snap up the tightly-held home for $2.73 million. He plans to do a full renovation of the property, which sold through Nick Simitzis of Belle Property.
Mr Simitzis said it was a strong result, and noted buyers in the market at the moment meant business. However, he felt the sense of urgency from buyers had dropped off in recent weeks as economic uncertainty increased.
“[But] the people out there are genuinely looking to buy … people are seeing it as an opportunity to maybe get into the market,” Mr Simitzis said.
A few suburbs away, 10 parties — mostly first-home buyers — registered to bid on a two-bedroom apartment at Bondi Junction.
Bidding opened at $620,000, with seven of the bidders making offers on the Art Deco unit at 5/143 Old South Head Road.
It sold through James Ledgerwood of The Agency Eastern Suburbs to an interstate buyer relocating from Victoria. The $806,000 result was $56,000 above reserve and above the $665,000, that records show the unit last sold for in 2015.
In nearby North Bondi, the two-bedroom ground-floor apartment of interior designer Juliette Arent, of Arent&Pyke, sold for $1.98 million.
Nine bidders competed for 2/10 Hastings Parade, making close to 40 bids to push the price $130,000 above reserve.
The 185-square-metre beach pad sold through Jason Boon of Richardson & Wrench Elizabeth Bay/Potts Point to a young couple, with their parents in tow. The unit last sold for $675,500 in 2013.
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