Sydney auctions: Waterfront house on the Bay Run sells for $7.575m
An original-condition, waterfront house on the Bay Run in Drummoyne sold for a cool $7.575 million – more than half a million dollars above its price guide – at virtual auction on Saturday.
Fifteen buyers registered to bid on the four-bedroom, two-bathroom property at 5 Burnell Street that has a double-frontage on Drummoyne’s “Golden Mile”.
It was one of 439 auctions scheduled in Sydney on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 82.8 per cent from 373 reported results, while 49 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
There were two failed opening bids at $4.5 million and $5.6 million before the auction started at $6 million, which was the initial price guide before it was updated multiple times during the campaign to $7 million.
The bidding went up in varying increments as six buyers competed for the keys.
After a number of pauses, including for “technical issues”, the property finally sold for $7.575 million – some $475,000 above the reserve – to an upsizing inner-west family.
Ray White Drummoyne’s Chris Wilkins said buyers were not afraid to compete for the property as it hit the market for the first time in 50 years.
“Once they go, they’re going to be there for the next 20 or 30 years. The smart buyers are realising that,” Mr Wilkins said.
“Drummoyne has been undervalued for far too long and it’s beginning to see its true value. You’re less than six kilometres from the city and you’re bounded by water.
“There’s no pandemic in Drummoyne.”
The suburb’s median house price rose 26.5 per cent in the past year ending June to $2.3 million, Domain data shows.
The five-bedroom house next door at 7 Burnell Street sold for $8.55 million exactly a year ago.
It came as the NSW government tightened rules around real estate inspections on Saturday, warning that anyone inspecting real estate in regional areas must genuinely need a home to live in – no investment properties.
In Balmain, Hong Kong-based expats snapped up a four-bedroom house at 3 Carieville Street for $4.25 million, sight unseen.
The 373-square-metre property drew eight registered buyers, of which six were active.
Bidding opened at $3.5 million and rose in $50,000 increments to $3.8 million, where it slowed down to $25,000 bids.
It sold for $4.25 million – $250,000 above its reserve – to buyers who had only inspected it through a virtual tour. The underbidders were also Australian buyers living overseas.
BresicWhitney Balmain’s Andrew Liddell said that, despite the lockdowns, this was the strongest market he had seen in more than 12 years.
“Everything we’re selling at the moment is vacant, which makes it easier. It’ll stay as strong as it is. Stock will continue to dry up and whatever hits the market will continue to perform really well,” Mr Liddell said.
Balmain’s median house price dropped 2 per cent to $1.95 million in the year ending June, compared to the previous year, Domain data shows.
In Zetland, investors bought a four-bedroom terrace at 33 Portman Street for $2.301 million.
Eight buyers registered to bid on the property with five placing offers after proceedings opened at $1.8 million, just $100,000 shy of the price guide.
It went back and forth for 39 bids, rising above the $2.1 million reserve until the hammer fell at $2,301,000.
The Agency Eastern Suburbs’ Brad Gillespie said buyers were still out in force despite the presence of fewer sellers during lockdown.
“Buyers are taking the assumption that prices will be rising. That’s why they’re still in the running, turning up and competing every week,” Mr Gillespie said. “They’re keen and desperate to buy and there’s not enough to look at, and there just doesn’t seem to be enough coming to market to pick and choose from.”
In Cronulla, a first-home buyer purchased a one-bedroom apartment at 12/23 Ewos Parade for $654,000.
The home, guided at $550,000, attracted 11 registered buyers, a mix of investors and first-home owning hopefuls.
The auction opened at $530,000, rising in mostly $10,000 bids thanks to six active buyers.
After 36 bids, the hammer fell at $654,000 selling $54,000 above reserve.
McGrath Thirroul’s Vanessa Denison-Pender said the market was still strong despite the lockdown with buyers continuing to make the effort to inspect properties and getting pre-approvals throughout this period.
She said the 40-year old, original condition property would need a “full renovation”.
Cronulla’s median unit prices dropped 2.2 per cent to $890,000 in the year ending June 2020, Domain data shows.
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