Sydney auctions: Lidcombe house bought at property market peak sells at a loss
A Lidcombe house bought at the height of the property market in 2017 sold at a loss under the hammer on Saturday.
Eighteen parties, a mix of first-home buyers, investors and developers, registered to bid for the three-bedroom home at 10 Gallipoli Street.
The successful buyers were an inner-west couple who bought the property as an investment for their children for $1.61 million, outbidding a developer.
It sold above its $1.5 million reserve on Saturday but fell $30,000 short of the last purchase price of $1.64 million in 2017, records show.
Laing+Simmons Merrylands selling agent George Lattouf said even though the house sold at a loss the vendors still got a higher price than they would have prior to the pandemic, due to the lack of stock.
“If they sold just before COVID they would have got $1.5 million. They got a terrific price,” he said. “The owner was very happy because he could no longer hold onto it. He said, ‘Look, I’ve paid enough interest and haven’t seen the gain in it.’ ”
Lidcombe’s median house price was $1 million over the year to July, Domain data shows.
It was one of 636 homes scheduled to go under the hammer in Sydney on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 74.9 per cent from 487 reported results, while 58 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Quakers Hill, a four-bedroom house at 31 Prescott Circuit sold under the hammer for $897,250 after 11 first-home buyers registered to bid.
The reserve was originally set at $900,000, later reduced to an adjusted reserve of $887,500. It sold for $9750 above the adjusted reserve to first-home buyers from Parramatta.
The home last sold for $872,500 in 2017, records show, meaning it traded for a paper profit of just $24,750.
The underbidder, who saw the home for the first time on Saturday, lost by $250.
Ray White Quakers Hill Tesolin Group selling agent Josh Tesolin said the vendors were “over the moon” with the result.
“They couldn’t believe it,” he said. “They just wanted to get rid of the debt. They had two properties and this wasn’t doing much for them.”
The home had been on the market since the pandemic hit, but Mr Tesolin is new to the campaign, handling the listing for the past three weeks.
Quakers Hill’s median house price is $772,000, Domain data shows.
In Collaroy Plateau, a three-bedroom house at 117 Veterans Parade sold for $1.52 million after a dozen parties registered to bid.
The tightly held property sold for $85,000 above its reserve to a couple upsizing from Narrabeen.
Laing+Simmons Narrabeen selling agent Gill Somers said while the lack of stock was buoying prices, some vendors were preparing to list homes before they were forced to sell.
“We have got it starting to show its face … we definitely know they can’t keep doing what they’re doing so they’re starting to clear some debts,” Mr Somers said.
The property last traded in 1989 for $226,500, records show.
The median house price in Collaroy Plateau over the past year was $1.89 million, Domain data shows.
In Burwood, a three-bedroom house in original condition smashed its reserve by more than half a million dollars as a whopping 33 parties registered to bid.
The auction for the deceased estate at 64 Stanley Street started bang on the $1 million reserve.
The property sold in less than 20 minutes for $1,545,000 to a local resident who was planning to renovate it and move in.
Richard Matthews auctioneer and listing agent Richard Baini said competition was heating up with buyers having little to choose from.
Burwood’s median house price was $1,154,000 over the past year, Domain data shows.
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