Sydney auctions: Investor drops $2.3 million on run-down Glebe house as buyers try lowball bids
A run-down terrace in Glebe sold for $2.3 million at auction on Saturday, a bumper day of auctions that saw some potential buyers – spoiled for choice – make lowball bids.
Bidding on the deceased estate at 181 St Johns Road opened at $1.3 million, which was rejected, before the auction got under way at $1.5 million, still $100,000 shy of the price guide.
It was one of 1190 auctions scheduled in Sydney on Saturday, another Super Saturday of auctions, with a higher number of homes for sale, putting buyer interest to the test.
By evening, Domain Group recorded a preliminary clearance rate of 73.2 per cent from 835 reported results, while 157 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
It’s the sixth week in a row that Sydney’s preliminary clearance rate has been below 80 per cent, as a rise in listings post-lockdown soaks up pent-up buyer demand and takes some of the heat out of the property market. The early figure is likely to be revised a few percentage points lower as more results are collected.
An auction clearance rate of 70 per cent roughly correlates with 10 per cent annual price growth.
Nine buyers registered to bid on the four-bedroom, double-fronted Victorian house despite the wet Saturday morning.
Despite the slow start, the price steadily rose in varying increments as four parties participated in the sell-off, and it really took off after $1.9 million.
After another handful of bids, the hammer fell at $2.3 million, selling $400,000 above the reserve to an investor, who plans to renovate and rent it out as a long-term investment.
Selling agent Matt Carvalho of Ray White Surry Hills, Alexandria, Glebe and Erskineville said the influx of new listings meant buyers had more choice.
“They’ve been spread a bit more thinly across [the houses for sale]. There’s no doubt about it. There are generally fewer people at auctions [and] the number of registered bidders is down,” Mr Carvalho said.
As a result, many buyers looking at bridesmaid suburbs can now get into their preferred neighbourhoods.
“All of a sudden, they were able to buy … which is nice to see, as more have come on. It’s not as crazy a competition as there was a few months ago.”
Glebe’s median house price rose 7.2 per cent to $1.93 million in the 12 months to September on Domain data.
In Cammeray, a two-bedroom, two-bathroom unit at 22/303 Miller Street passed in at $1.1 million but sold later for $1,167,600.
Despite attracting three registered parties, all first-home buyers, only one bid was made with an opening offer of $1.1 million – bang on the price guide.
But the property was passed in and sold in post-auction negotiations to a young expat couple returning from London.
The reserve was $1.15 million.
Laing+Simmons Artarmon’s Catherine Ong said she was surprised by the outcome.
“I think it was the weather [and] I suspect the market has changed quite a bit,” Ms Ong said. “I think people just observed and wanted to see what the other person was doing.
“There are many choices, and I think people are genuinely choosing to wait and see.”
Records reveal the property last traded for $540,000 in 2005 and that Cammeray’s median unit price rose 9.5 per cent to $1.15 million.
In Ermington, a young Carlingford family picked up a newly built home at 9 Stamford Avenue for $2,355,500.
Bidding started at $1.8 million, about $200,000 short of the price guide before it went up in varying increments as six of the 15 registered buyers participated in the auction.
The reserve was $2.15 million.
Selling agent Ahmad Malas of Professionals Ermington said despite more stock on the market; standout homes were still fetching strong prices.
The property last traded in 2017 for $1.77 million, records show.
Ermington’s median house price rose 9.4 per cent to $1,372,500 in the 12 months to September.
In Kensington, a young family bought a three-bedroom unit at 1/81 Doncaster Avenue for $1.52 million.
Five of the seven buyers, all upsizers, were active at the auction, which started at $1.2 million, $50,000 short of the guide.
The reserve for the art deco unit was $1.4 million.
McGrath Coogee’s Charles Stevens said the property’s major drawcard was its proximity to the public school across the road.
He said the market had definitely changed with lower levels of buyer inquiry and inspections in the past few weeks as interested parties had more to choose from.
“A lot of people are aware that there will be a lot more stock hitting the market in January. If it doesn’t tick 8 out of 10 boxes, they might register and go, but they won’t bid,” Mr Stevens said. “It’s definitely more balanced. It’s been a seller’s market for quite a while.”
The property last traded for $561,000 in 2004, records show.
Kensington’s median unit price rose 0.8 per cent to $900,000 in the 12 months to September.
We recommend
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
