Temperatures on the rise, but Sydney auction market lacking heat

While the mercury rose above 30 degrees in Sydney on Saturday, the heat was missing in the property market.

Conditions were still cooling at auctions across the city, with plenty of agents reporting that properties had either been withdrawn or passed in.

It was a hard slog even for those that did make it to market, such as 273 Queen Street in Concord West.

It was one of 556 scheduled auctions in Sydney on Saturday. By evening, Domain Group had recorded a preliminary clearance rate of 53.4 per cent from 318 reported results.

About two dozen people gathered in the backyard to watch the five-bedroom family home go under the hammer in the scorching midday sun.

The auctioneer was met with silence when he called for an opening bid.

Five agents worked all corners of the luscious green backyard in an attempt to raise interest from the registered parties until a young couple emerged, offering $1.75 million.

A young Strathfield family put in a counter bid of $1.8 million, kicking off a two-horse race that lasted for more than a dozen bids. Bids went up in increments of $50,000 at the outset, before whittling down to $10,000 and $5000 rises.

The young family walked away with the keys to the house for $1,927,000 after a final $1000 bid knocked out the competition once and for all.

Bessie Chen and her husband, Lucas Wang, said they had been looking for a new place for a few months but this was their first auction.

“We were so nervous, we’ve never come to an auction before,” Ms Chen said, adding she had hoped to nab the property for less.

Selling agent Dib Chidiac of Raine&Horne Concord was pleased with the result, particularly given  he had been expecting the sellers to lower the reserve from $1,925,000 .

“It’s been one of our better auctions and very good result for the vendor,” Mr Chidiac said.

“It did very well in today’s market. If you look in the area it’s a 50 per cent clearance rate in Sydney and in the actual Concord Canada Bay council area it’s a lot less.

“Most people are pulling their auctions or selling prior for average price but we priced it correctly.”

The property, on 443-square metres, last sold for $750,000 in 2007. The median house price for Concord is $2.05 million.

Cooleys auctioneer Damien Cooley reported varied results on Saturday. He said many properties were withdrawn or passed in if vendors were not listening to agents’ feedback.

A four-bedroom property on 94 Ocean Street South in Bondi sold for $3 million with only one registered bidder.

“We had a reasonable seller and a reasonable buyer. Our vendor reduced their reserve to meet the market,” Mr Cooley said.

The 386-square-metre block of land last sold for $1.8 million in 2013.

Elsewhere in Sydney

SOLD $1,035,000
Narrabeen
36/1337-1347 Pittwater Road
2 bedrooms, 2 bathrooms, 2 car spaces

Four bidders threw their hats into the ring for the two-storey townhouse. Starting at $800,000 there were more than a dozen bids exchanged before it sold $5000 above reserve for $1,035,000. Selling agent Mark Griffiths of Ray White Seaforth said townhouses were rare in Narrabeen and the property had the only double lock-up garage in the Rosella Gardens development. “When you have something this unique it will do well no matter what the market is like,” Mr Griffiths said. Records show it last sold for $690,000 in 2013.

See more at domain.com.au/2014583957

PASSED IN
Naremburn
9/2A Palmer Street
2 bedrooms, 2 bathrooms, 1 car space

More than two dozen groups inspected the property but the mix of downsizers and young couples failed to bid on auction day. A small crowd of about eight people watched the townhouse pass in at auction. Selling agent Helen Wilson of Belle Property Neutral Bay was confident it would sell in post-auction negotiations for around $1.13 million. The median house in Naremburn is $2,235,000. The property last sold for $770,000 in 2014.

See more at domain.com.au/2014570005

SOLD $2,065,000
Drummoyne
60 Dening Street
2 bedrooms, 1 bathrooms, 1 car space

A crowd of 100 people gathered to watch this freestanding home go to auction for the first time in 60 years. A whopping 10 registered bidders were vying for the keys with six groups active. Bidding opened at $1.65 million, increasing by $50,000 early on, but slowing to $5000 increments at the pointy end of the race. A young family nabbed the property. Selling agent Chris Wilkins of Ray White Drummoyne said its potential for a renovation knockdown, coupled with its location close to the water, made for a hot auction. The median house price in Drummoyne is $2 million.

See more at domain.com.au/2014580895