Townhouse in Sydney's Waverton sells for $1.84 million at well-attended auction

Bargain-hunters are starting to jump back into the weakened Sydney property market, with vendors becoming more willing to lower their price hopes and some auctions this weekend drawing surprising crowds.

Those who walked away with keys to their new homes on Saturday included first-home buyers, young families upsizing and experienced renovators.

A crowd of about 50 people spilled onto the street as they watched 6/92 Bay Road in Waverton go under the hammer.

An opening bid of $1.6 million kicked off the sale, which saw five of the seven registered parties throw their hats in the ring.

Rising mostly in $10,000 increments, the auction turned into a two-horse race at the pointy end. The hammer fell at $1.84 million, after the home last sold for $1.51 million in 2015.

The buyer, who did not want to be identified, said he had been watching the market for the past four months to buy back into since he was renting.

“We had been watching [the market] cool … we think now is a good time [to get back in], it could go down further. We think around this area is probably going to be around this level,” the buyer said.

Selling agent Donovan Murphy of Di Jones North Shore Neutral Bay was pleased with the result, which achieved $90,000 above reserve.

“This part of the market with young families is still quite buoyant at the moment, I think. It’s less reliant on those who are investing and it’s also a great market to upgrade in,” Mr Murphy said.

“This property would have sold [for] a lot more two years ago so there are plenty of young families out there who are seeing great value in the market right now.

“[The result is] exceptional. I dare say there would be 99 per cent of people out there selling at the moment who would love to trade places with our vendors.”

It was one of 287 scheduled auctions in Sydney on Saturday.

By evening, Domain Group had recorded a 57.4 per cent clearance rate from 206 reported results.

Meanwhile in Sydney’s inner west, an 1890s-vintage Balmain terrace on 35 Waterview St, which had been tightly held in one family for a century, sold for $1.52 million, some $200,000 above reserve. 

The deceased estate was watched by a 100-strong crowd and hotly contested by four of the seven registered bidders, who were mainly experienced renovators and builders. Bidding started at $1.1 million and quickly rose, with a family of builders nabbing the keys to the property.

Selling agent Peter Gordon of Cobden & Hayson said strong interest for the well-positioned yet dilapidated house was a good litmus test for Sydney’s property market.

“It’s a good sign of confidence in the market, in a blue-chip suburb. The buyers are zeroing in on the good locations where they can add value to property,” Mr Gordon said.

On the northern beaches, first-home buyers put in the winning bid of $1.86 million for a two-bedroom house on 31 Surfers Parade in Freshwater. It last sold for $245,000 in 1995.

Selling agent Michelle Galletti of Cunninghams Real Estate said their buyers agent’s strong bidding helped them walk away with the keys as they faced competition from six other registered parties, including investors and young couples.

It sold for $40,000 above reserve and Ms Galletti said her vendors were setting realistic expectations.

Back on the lower north shore, another first-home buyer couple nabbed the keys to a a semi-detached house on 25 Montague Rd in Cremorne.

The two-bedroom property sold for $1,736,000, or $36,000 above reserve, and last sold for $295,000 in 1992. The winning bidders were up against investors and other first-home buyers.

Selling agent Jon Snead of The Agency North said buyers have flooded the market in the new year after they taking a back seat from late October.

“Lower north shore has done very well and is very resilient; Cremorne has performed well,” Mr Snead said.

“Buyers are back on the horse – buyers who I had seen last year and are ready to buy. Adjustments have been made and vendors are ready to meet the market, and that’s what’s generated an upsurge in this activity.”