Sydney auctions: Original Victorian terrace in Woollahra sells for $1.435 million
An original two-bedroom Victorian terrace in Woollahra was on the market from its very first bid at auction on Saturday, in front of a crowd of about 40.
Eight parties registered to bid on the property at 9 Bowden Street, which was guided at $1.2 million to $1.25 million.
While not all Sydney properties are selling under the hammer or above reserve, many are still recording strong prices akin to pre-COVID-19 results despite the pandemic wreaking havoc on the broader economy.
The Bowden Street auction was one of 492 scheduled in the city on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 65.5 per cent from 286 reported results, while 76 auctions were withdrawn.
An opening offer of $1.275 million instantly surpassed the reserve of $1.25 million.
The two-horse race lifted the price in mostly $10,000 and $5000 increments.
The hammer fell at $1.435 million – selling at $185,000 above reserve – to a young couple from the area who were planning to move in.
The Agency Eastern Suburbs selling agent Tony Laing said prices were underpinned by the small number of properties on the market.
“It’s an indication of the lack of stock on the market … and there is still a good depth of buyers in the marketplace,” Mr Laing said. “You’ll start to see a bit more stock come onto the market in the next month to six weeks.”
He said the “September cliff” – experts had forecast an economic weakening because JobKeeper and JobSeeker were due to expire before recently being extended – was no longer a large consideration in buyers’ and sellers’ minds.
“That’s been pushed into the background at the moment. It’s not at the forefront of people’s minds.”
The 55-square-metre block sold for $297,000 in 1996, the price more than quadrupling in 24 years, records show.
The small number of properties on Bowden Street are tightly held with sales few and far between. A renovated one-bedroom terrace at No.1 on 63 square metres was the last sale on the street, fetching $1.51 million in November 2019, records show.
The median house price for Sydney’s city and eastern suburbs dropped 3.7 per cent in the three months to June 2020 to $2.375 million, according to Domain data.
In Alexandria, a crowd of about 80 showed up to watch a four-bedroom terrace at 340 Belmont Street guided at $1.9 million go under the hammer.
The 127-square-metre block attracted four registered parties, who all threw their hat into the ring.
Bidding began at $1.7 million and rose by $50,000 increments before it slowed down at the pointy end.
The auction came to a halt at $2.015 million where the property was passed in, just short of the $2.05 million reserve.
Ray White Surry Hills, Alexandria, Glebe and Erskineville director Ercan Ersan said it sold soon after in post-auction negotiations for $2.025 million to first-home buyers from Bankstown.
“I believe it will become more common and frequent,” Mr Ersan said. “The market is as good as it’s going to be for quite some time.
“There’s still good confidence and we’re still getting good results but that may get tougher as the supply comes on.
“People are not waiting for September any more. August is the new September,” he said, adding his team had listed 45 auctions for the traditionally quiet month of August.
He said another price drop in the next six to 12 months would depend on the economy and the virus.
“In the meantime, prices will plateau. I don’t think they will go up or down anytime soon.”
The 126-square-metre block last sold for $600,000 in 2004, records show, the price more than tripling in 16 years.
Three more properties sold on the same street this year with a three-bedroom terrace on a 153-square-metre block at 136 Belmont Street fetching $1.9 million in February, records show.
Inner west house prices recorded the largest quarterly decline of all Sydney regions in the June quarter, dropping 5.9 per cent to a median of $1.6 million.
In Wetherill Park, a four-bedroom double-brick house in original condition at 9 Marvell Road drew four registered buyers.
Bidding began at $900,000 as three parties vied for the keys to the property. The price rose in $20,000 and $10,000 increments.
But the property was passed in at $1.04 million, just $10,000 shy of the reduced reserve.
Laing+Simmons selling agent Sonny Tran said the vendors were willing to meet the market after dropping their reserve from $1.1 million to $1.05 million.
“The vendor was very genuine … it was so close,” Mr Tran said, adding that he was confident it would sell in post-auction negotiations.
The 585-square-metre block last sold for $258,000 in 1991, records show.
The last property that changed hands on the street was a five-bedroom, three-bathroom house at 22 Marvell Road in 2018, records show. The 550-square-metre block sold for $850,000.
The median house price in the south west remained unchanged at $710,000 in the quarter ending June 2020, according to Domain data.
In Cremorne, a three-bedroom townhouse at 2/9 Reed Lane attracted a crowd of about 40, including five registered parties.
Bidding began at $1.65 million, moving up in $50,000 increments thanks to the two-horse race.
The property eventually sold bang on reserve for $1,925,000 to a young family upsizing from Lane Cove.
Belle Property Neutral Bay principal Matthew Smythe said the market was continuing to perform, all things considered.
“The market is still stable overall. There’s still good buyers out there and the owners who are willing to meet the market, then, properties are still selling,” he said.
The 219-square-metre block last for $1,173,000 in 2013, records show.
The median house price in the lower north shore dropped 4.8 per cent in the second quarter to $2,502,500, according to Domain data.
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