Sydney auctions: Tempe cottage sells for $8000 less than previous time
A 1920s cottage in Sydney’s inner west has sold at auction for $8000 less than when it last traded at the height of the property market in 2017.
The freestanding three-bedroom house at 74 Station Street, Tempe drew eight registered bidders and sold for $1,372,000.
It was one of 584 homes scheduled to go under the hammer in Sydney on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 72.2 per cent from 435 reported results, while 67 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Bidding opened at $1.15 million, below the $1.2 million price guide. The price rose in varying increments of $50,000 and $25,000 down to $10,000 and $5,000 as two buyers threw their hats in the ring.
The hammer fell at $1,372,000 – selling above the $1.33 million reserve – to a young couple upsizing from their Redfern unit.
BresicWhitney Glebe selling agent Chris Nunn said the vendors were a young family making a tree change and moving further out of the city.
“They had resigned themselves to potentially not hitting what they bought it for so they were pleasantly surprised today that it went as high as it did.”
The owners purchased the 272-square-metre block in 2017 for $1.38 million, and knew they had bought at the peak of Sydney’s property market, Mr Nunn said.
“They were aware they had bought it at the peak,” he said. “There weren’t any illusions there – they knew it would be difficult to get back there.
“What they’re buying now they would be buying for less than what they would have bought in the peak as well, so really my guess would be nothing lost.”
BresicWhitney head of sales and auctioneer Thomas McGlynn said the number of registered and active buyers at auction was a good example of the current market.
“Lots of buyers … would like to buy, but a lot are still anxious about what the market will do,” he said. “The major banks have come out and reassessed their property forecasts in the next 12 months. That’s confused buyers more. Their forecast says there could be some growth in 2021.
“There is a good depth of buyers in the market but a lot of them are hesitant to push forward and bid aggressively, but they’re still there.”
The median house price in Sydney’s inner west slipped 5.9 per cent in the June quarter to $1.6 million, Domain figures show. But it is still 10.3 per cent higher over the year to June than in the previous year.
In Kingsford, a crowd of about 100 turned up to watch an art deco house at 6 Marville Avenue go under the hammer. The auction crowd was moved from the backyard onto the street to accommodate social distancing for the growing numbers of onlookers.
A buyer offered an opening bid of $1.7 million, which was knocked back as it was below the $1.95 million auction price guide.
The three-bedroom house was inspected by about 90 groups – a mix of young families, empty nesters and downsizers – throughout the campaign.
But the property failed to draw another successful bid and, after a vendor bid of $1,975,000, it was eventually passed in.
McGrath Coogee selling agent Charles Stevens said he was negotiating with three buyers, including one who did not attend.
“I like to be transparent and … by going to auction it exposes to the market what it’s really worth,” Mr Stevens said.
He said buyers were reluctant to bid at auction because they were afraid of overpaying but that would become harder behind closed doors.
“The buyers who are there today have got the money. They don’t want to overpay. They want to wait until someone else puts a bid in so they can make sure that what they’re paying is market value.”
The sale price guide is now at $2.25 million, Mr Stevens said.
The property last traded for $798,000 in 2006, records show.
Kingsford’s median house price slipped 4.3 per cent to $1,965,000 in the year ending June, compared to the prior year, Domain figures show.
Meanwhile in Canley Vale, eight buyers registered to bid on a five-bedroom house at 37 Avenel Street.
An opening bid of $800,000 started the auction with three buyers raising the price in $10,000 increments.
The property sold after 10 minutes for $900,000, bang on reserve, to a local investor.
Laing+Simmons Cabramatta selling agent Sonny Tran said the market in his area was doing well.
“It’s a good result. I think the market is good, it’s not slow,” he said. “If it’s the right money then they will buy.”
It sold above the median house price in Sydney’s south west of $710,000, Domain data shows.
The property last traded for $650,000 in 2013, records show.
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