Sydney auctions: First-home buyers left behind as apartment-hopper drops $807,000 on one-bedroom Cronulla unit

An apartment-hopper in the Shire has out-bid first-home buyers for a waterfront pad, splashing $807,000 for a unit with only one bedroom. 

The 103-square-metre unit at 1/10 Roker Street, Cronulla attracted 17 parties — including first-home buyers, investors and downsizers — who wished to bid, but only six threw their hats in the ring.

It was one of 695 auctions held in Sydney on Saturday.

By evening, Domain Group had recorded a 77.2 per cent clearance rate from 484 reported results.

Bidding opened at $500,000, rising quickly to become a two-horse race between cashed-up buyers.

It sold for $807,000, exceeding its reserve by $157,000. It last sold 13 years ago for $350,000, records show, more than doubling in value.

Successful buyer Miriam Greenwood said she had been looking for the past year after she sold her apartment in the same area, about a 30-kilometre drive south of the CBD.

“I’ve lived in South Cronulla for six years now,” Ms Greenwood said. “It was a very, very good offer [on my previous apartment]. I was in no hurry to buy.”

She said although the property had a guide price of between $590,000 to $650,000 she thought it would sell for more.

“I’d done my research,” Ms Greenwood said. “I was thinking it would sell around $750,000 to $760,000. People dropped off at the $760,000 mark … you know then that you’ve got your real opponents.

“You’ve got to have two prices – a price you’re willing to pay now and the price in six months’ time.”

Ms Greenwood knew that first-home buyers did not stand a chance as competition has grown at auctions in recent months.

Sydney house prices jumped 4.8 per cent in the three months to September, Domain figures show.

McGrath Cronulla selling agent Gus Liu said most first-home buyers dropped out of the race around the $600,000 mark.

“The under-bidder was an 80-year-old who had a fairly big house in Penshurst,” Mr Liu said. “If they sold it for $1.5 million or $2 million, they don’t care if they pay a few thousand dollars more, which makes it hard for first-home buyers.”

He said the sub-$1.5 million market was quite hot because of fierce competition from cashed-up downsizers.

In Cremorne, a two-bedroom unit at 1/10 Bannerman Street saw six parties register to bid.

Proceedings began at $950,000, rising steadily thanks to four parties – all owner-occupiers – who entered the fray.

It sold for $1.07 million to an executive couple who will live in the unit. The reserve was $1 million.

It last sold for $630,000 in 2011, almost doubling in value.

Belle Property Neutral Bay selling agent Matthew Smythe said the lower-north-shore auction was indicative of the current market.

“You’re getting a few buyers register, there’s competition and buyers have to stretch themselves to not miss it,” Mr Smythe said.

“Part of it is this time of year … buyers will move because Christmas is not far away and if they don’t act then the next opportunity is in February.”

In Bexley, a four-bedroom house at 12 Shirley Street also attracted strong competition from 12 registered bidders.

An opening bid of $1.1 million kicked off the auction, moving in increments of $50,000. It became a two-horse race between a couple of young families who were both looking to upsize.

It sold for $1,546,000 – exceeding its reserve by $46,000 – to a young Rosebery family returning to the suburb.

McGrath Brighton-Le-Sands selling agent Marc Gable said there was strong competition for the 556-square-metre block.

“The aggressive bidding from buyers was not only due to a lack of stock but the end of year approaching so fast,” he said.

The property last sold for $430,000 in 2001, more than tripling in value.