Sydney auctions: Local investors splash $1,026,000 on Oatley house
Six bidders fought it out for a three-bedroom house in south Sydney at auction on Saturday, sending the price soaring above its guide to $1,026,000.
The property at 1/7 Gungah Bay Road, Oatley attracted a large but socially distanced crowd of 80 in a neighbouring park, including 12 registered bidders.
It was one of 531 scheduled auctions in Sydney on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 63.5 per cent from 339 reported results, while 83 auctions were withdrawn.
Bidding opened at $700,000 and took a while to take off from there.
Half of the registered bidders had thrown their hats in the ring by the time it hit the reserve of $850,000.
It continued to rise, mainly in $10,000 increments, but dropped to a two-horse race after $950,000.
The 230-square-metre block sold for $1,026,000 – $176,000 above reserve – to a local family who purchased the property as an investment.
Ray White Oatley selling agent Matt O’Shea said the price guide was $850,000 throughout the campaign.
“The owners were very realistic. We expected to sell for early $900,000 but not over $1 million,” Mr O’Shea said.
The sheer lack of properties on the market was supporting such strong prices, he added.
“Buyers are a little bit frustrated with the lack of stock. Vendors are a little bit reluctant [to list properties],” he said.
Successful buyer Renny Vieira said her family had been looking for an investment property for the past six months.
“We had a certain budget and it’s only the second home available within my budget in the Oatley area,” she said. “I’m quite surprised we didn’t find anything up to now.”
The property last sold for $663,000 in 2013, records show.
In Chippendale, a run-down Victorian terrace at 49 Abercrombie Street drew eight registered bidders.
Bidding for the three-bedroom property began at $950,000 with the price rising in varying increments thanks to four active parties.
The property sold for $1.15 million – $50,000 shy of the reserve – to an out-of-area buyer who was purchasing her daughter’s first property.
The Agency Eastern Suburbs selling agent Brad Gillespie said the 101-square-metre house netted a strong result.
“Considering the work required – it’s not really liveable, it’s in disrepair – that’s a strong price today,” Mr Gillespie said, adding that it was a fair price for vendors and buyers.
“Slowly but surely [properties] are coming on but the number will become stronger again in spring,” he said. “There’s just more people out in the last two weeks … sentiment is much stronger than in April and in parts of May.”
In Canley Heights, a three-bedroom house at 1 Howe Place attracted three registered bidders – all investors – but passed in at a level only $30,000 above the price it last sold for four years ago.
Only a handful of bids were placed before the sell-off stalled at $920,000.
A vendor bid of $930,000 was placed before the home was passed in.
Laing+Simmons Cabramatta selling agent Sonny Tran said the vendors were investors who hoped to sell the property in post-auction negotiations with a $1 million reserve.
“The vendors are waiting for the right price. They purchased the property for $900,000 four years ago,” he said.
The property has a self-contained granny flat at the back of the 930-square-metre block and nets a total rental income of $890 a week, Mr Tran said.
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