Vendors sell early in bid to get better prices at Sydney auctions

Buyers demand in Sydney’s hot auction market is at a point where some vendors are bringing forward their auctions to take advantage of the interest and get a better price under the hammer. 

An auction at 37 George Street, Paddington, this weekend was brought forward by three weeks, such was the interest in the property, according to Scerri Auctioneers’ Chris Scerri.

“There’s been a big spike in numbers of buyers making offers prior to auction,” Mr Scerri said

Demand showed no sign of having slowed in the week since, with Mr Scerri selling  a property at 6 Eustace Parade, Killara, this weekend on behalf of Richardson & Wrench Lindfield for $2,068,000 – $168,000 above the reserve.

Six registered bidders fought it out during a 27-minute auction, and the winning bidder bought on behalf of an international buyer, Mr Scerri said.

Sydney’s preliminary auction clearance rate was 80.5 per cent following 675 auctions and 454 reported results.

Domain economist Trent Wiltshire said Sydney’s results would probably be 75 per cent once all the results were tallied. 

“This follows a 74 per cent clearance rate in February, the highest level since March 2017,” Mr Wiltshire said.

“Auction numbers are much higher this year, with the 675 auctions on Saturday being 30 per cent higher than the same Saturday last year,” he said.

One of the biggest results of the weekend in Sydney was also in Killara where Ray White Upper North Shore agent Lisa Davies sold her own home.

The five-bedroom home at 36 Powell Street was snapped up for $6.1 million under the hammer, $600,000 above the reserve.

Cooley Auctions’ Damien Cooley said only two bidders had the chance to bid after the opening offer was on the reserve.

Ms Davies said she was now looking for her next project, having spent the past four years renovating the home. She said she had been waiting for the right time to sell, after the market downturn in 2018 and the first half of 2019.

“It’s a beautiful family home,” Ms Davies told Domain. “It was a huge result and makes me think my decision was right.”

A four-bedroom home at 8 Wallis Street, Woollahra, also sold for $6.1 million selling under the hammer.

The Agency Eastern Suburbs property partner Ben Collier said four active bidders fought it out for the keys, with a young family making the winning bid.

The buyers had been renting after selling their own home, looking to upsize in the local area, Mr Collier said.

The Agency Eastern Suburbs in conjunction with Belle Property also sold 2-4 Cuthbert Street, Queens Park, for $4.65 million. The house, which was converted from two adjoining Victorian terrace homes, was snapped up by a young couple looking to get into the area.

The big results have come despite some speculation that the coronavirus outbreak may affect the market in coming weeks. 

Mr Cooley said he had heard some vendors were looking to list as soon as possible, afraid of the impact of coronavirus on house prices.

At the weekend, he auctioned a four-bedroom home at 10 Parkes Street, Manly Vale, on behalf of Cunninghams Real Estate and on behalf of the vendor, who happened to be his wife’s cousin.

The home sold for $2,672,500 – above the reserve of $2.35 million. 

“There’s always a bit of extra pressure when you’re selling for family,” Mr Cooley said. 

Another “belter” auction was held at 15 Watson Street, Putney, where a family home was sold for the first time in 66 years.

The four-bedroom home sold for $2.7 million, $200,000 above the $2.5 million reserve in a deceased estate sale. 

Ray White Sydney chief auctioneer Alex Pattaro said there were 22 registered bidders, with seven of them active throughout the sale.

A local family bought the home, and plan to knock down and rebuild on the land, which is one of the biggest blocks in Putney.

While houses were selling well, a three-bedroom, ground-floor apartment at 9/37 Gillies Street, Wollstonecraft, also sold well above reserve for $1,655,000.

Belle Property Neutral Bay’s Tom Scarpignato said the reserve was set at $1.59 million.

Four registered bidders fought it out for the apartment with investors from the mid-north shore making the winning bid.

Mr Scarpignato said they can expect a rental return of between $850-$900 a week.

“This result is indicative of a strong market with demand from investors and owner-occupiers alike,” he said.