Two-storey Erskineville terrace sells for $1.16 million after reserve reduced

The credit crunch has arrived as fewer buyers throw their hat in the ring at auctions due to tightened lending standards.

That was certainly the case when bidding opened at one million dollars at 66 Macdonald St in Erskineville.

It was one of 442 scheduled auctions on Saturday in Sydney. By 6.30pm, the Domain Group recorded a 51.4 per cent preliminary clearance rate from 264 reported results.

Bidding for the two-bedroom terrace in Sydney’s inner west almost failed to get off the ground as auctioneer Ricky Briggs had half the pool of bidders to work with.

“We were expecting four to compete but due to the lending criteria toughening right up, they actually withdrew from bidding today,” said Mr Briggs.

After a few minutes of cajoling, two of the registered bidders finally emerged from the crowd of about 36 people who scattered across the street.

Both parties kicked the sale along by increments of $10,000 for about a dozen bids until the hammer fell at $1.16 million, reduced from the initial reserve of $1.2 million.

“I thought with how the market is shaping at the moment … there was relatively good competitiveness between the two buyers that we had registered today,” said Mr Briggs.

Selling agent Nicholas Viewey of Viewey Brothers said it was a good auction for the cooling Sydney property market, but definitely a sign of the times. He hears more and more missing out on approved lending before the big day.

“We were expecting two more registered buyers … one of those buyers interestingly didn’t bid because they didn’t get their finance approved in time,” Mr Viewey said. “That buyer did think they would get their finance approved within that period of time, so they were quite shocked they weren’t able to.

“I do think it is [a sign of the times]. I am hearing more about that from buyers, there is tighter lending and it’s a lot more difficult than what it was say eight weeks ago,” he said.

But buyers Collin McIntyre and Stephen Hodge couldn’t be happier with their purchase.

“We’re excited but glad it’s over. We just sold our place [in Meadowbank] and it’s been a good area but we were ready to move,” said Mr McIntrye who plans on moving in with his partner.

The property last sold for $829,000 in 2013. Erskineville’s median house price is $1,382,000.

It was a different story on the northern beaches, where a rundown Balgowlah Heights home smashed its reserve by $285,000.

About 50 people gathered in the front yard of 37 Lewis St. Bidding for three-bedroom, one-bathroom house opened on reserve at $2 million and went up in increments of $50,000, petering out to $5000 increments by auction’s end.

Three of the five registered bidders were active, reminiscent of the “good old days” of Sydney’s strong-performing property market, selling agent Matt Brady of Belle Property Seaforth said.

Everyone vying for the keys were young families out of area, wanting to get into Balgowlah Heights.

The winning bidders plan to build and renovate their dream home in time, Mr Brady said.

The potential for a knockdown and rebuild, and a prized position, led to the healthy result and a strong sales campaign. A total of 60 groups went through the house, he said.

The tightly-held property was a deceased estate and offered on Saturday for the first time since It was built in 1949.

Elsewhere in Sydney

9 Surrey Rd, Turramurra. Photo: Supplied

PASSED IN
Turramurra
9 Surrey Road
5 bedrooms, 3 bathroom, 2 car spaces

Though more than 50 groups, mainly local families looking to trade up, went through this large house in Sydney’s north, it passed in without a bid. Director and selling agent David Walker of Ray White Turramurra and Wahroonga said buyers were “playing a bit hard to get, they don’t offer unless they have too. There is no urgency shown from the buyers”. The sole registered bidder was negotiating post auction. The vendors built the property nine years ago and want to downsize to the northern beaches. Turramurra’s median house price is $1,987,500. The property last sold in 2006 for $985,000. 

See more at domain.com.au/2014441103

40a Arthur St, Strathfield. Photo: Supplied

SOLD $1.2 million
Strathfield
40a Arthur Street
2 bedrooms, 2 bathroom, 1 car space

This property sold to a young family upsizing from Burwood. Selling agent Ben Horwood of LJ Hooker Drummoyne and Concord said the auction was lasted for at least 40 minutes with about 50 bids and eventually selling for the reserve. He said the process “reflects the market; buyers are quite cautious, they’re wanting to see the competition amongst other buyers, their bids are smaller in increments and they want to make sure they’re not overpaying in property. They’re being very conservative in approach.” The median house price is $2.65 million. 

See more at domain.com.au/2014438755

44 Greene Ave, Ryde. Photo: Supplied

PASSED IN
Ryde
44 Greene Avenue
3 bedrooms, 1 bathroom, 2 car spaces

Despite a whopping 15 registered bidders for this property, just two threw their hat in the ring, both developers. Bidding opened at $1.8 million and passed in just under $2 million after 10 bids Several investors and developers  eyed this 720-square metre block for its potential to be knocked down and rebuilt. It has DA approval for a duplex. Selling agent Ben Boutros of Ray White North Ryde said about 60 groups had gone through the house and it garnered “quite a lot of interested people and an array of buyers” because of Ryde’s redevelopment overall. The property last sold in 2007 for $590,000. The suburb’s median house price is $1,668,000

See more at domain.com.au/2014438392