Red-hot Sydney property market hits highest clearance rate in more than a year

The auction of a Birchgrove terrace on Saturday was rapid, abrupt and left punters gasping for breath.

The two-bedroom artist’s haven in the peaceful inner west enclave sold for $1,482,000 – $132,000 more than its reserve. Not bad for a place with no parking.

It was one of 578 auctions held across the city on the weekend. By Saturday evening Domain Group had collected 394 results and put the clearance rate at 85.1 per cent.

“It was a stunning result for a red-hot Sydney market as the clearance rate bounced back hard to record its highest result since June last year,” said Domain Group’s chief economist Andrew Wilson.

Bidding opened at the buyer’s guide of $1.2 million and went up swiftly in $25,000 increments, amongst four of the five registered parties. The property, at 3 Sardinia Place, almost sold when auctioneer Damien Cooley of Cooley Auctions called it three times at $1,375,000. Paddle raised, a new bidder called out “one-point-four”, starting another brisk burst of bidding.

Slightly stalling at $1,480,000, Mr Cooley coaxed the eventual underbidder to fight for the property. “Can I say $1000 for you? Don’t lose it for $1000.” The underbidder added $1000. But it was no use. The prize slipped from his fingers as the buyer, a young professional from Pyrmont, added another $1000, ending the auction. The new owner declined to speak to Domain.

Selling agent Anthony Ross of Cobden & Hayson Balmain, who had 90 groups inspect the house before auction day, and had issued 10 contracts, and said it was a good outcome.

“Another similar property in the street recently sold for $3000 more but that was fully renovated,” he said.

“The potential buyers loved this property because of the location; it’s quiet but in the middle of everything. It’s a character-filled home with a great layout, great feel and potential, with council approval, to build second level up at the rear.

“It’s a great, tightly-held pocket of Birchgrove and at a great price point for first-home buyers.

“Through the whole year not much has been on the market in Birchgrove; it’s a classic supply-and-demand issue. That is why our clearance rates are higher than Sydney’s clearance average.”

He also said the 145 square metre block was larger than average for the suburb.

The quirky little house is deceiving from the front but as you walk inside, you realise it is a far cry from a shoebox. Spacious, airy and full of light, the property detaches from the properties either side after the front master bedroom. Cedar French doors from the second bedroom open out to a sunny internal courtyard. Walking back indoors to the living room and past the bathroom with small tub is another small courtyard. At the end of the garden is a freestanding artist’s studio with loft storage and skylight.

Another hot auction was held at 65 Villiers Street, Rockdale, in Sydney’s south. That house sold for $1,366,000 – $136,000 more than its reserve.

Bidding for the immaculate, deceased estate opened at $1 million and quickly reached $1.3 million, in $50,000 increments. It slowed with smaller amounts towards the end, with a Maroubra couple outbidding another couple from Enmore.

The period home was popular for its original character features. Bill Tsounias, of McGrath Brighton Le Sands, said buyers also liked the land size of 638 square metres. He had 97 groups inspect during the campaign and issued 13 contracts.

In what is likely to be the most expensive property sold on Saturday, an original 1960s time capsule in Point Piper that was at the centre of a will dispute has fetched more than $13 million.

The Wyuna Road residence was a no-expense-spared project for Betty Harris and her late racing identity husband Keith Harris after they bought the land for £15,000 (about $400,000 in today’s money) in 1962.

But it is best known for the court battle that followed Betty Harris’ death in 2009 when members of the family contested her will, claiming she lacked the mental capacity to leave her $12.5. million estate to her kindly neighbour and friend, Beatrice Gray.

Fifty-two years after it was built, Ms Gray, a lawyer and university lecturer, decided to sell the home with its north-facing harbour views, beautifully maintained interiors and a Japanese-influenced garden.

Agents James McCowan and Michael Pallier, of Sotheby’s International, could not comment on the result but a sold sticker went up on Saturday.