A grandmother was “over the moon” selling her charming house for $4.35 million at auction to a retired couple who bought it for the land value only, and plan to knock it down and rebuild.
Five bidders registered and two actively participated in Saturday’s auction for the five-bedroom property located on Pymble’s “blue ribbon” east side at 10 Graham Avenue, guided at $3.5 million.
Bidding started at $3.5 million, when the underbidder placed the opening bid. The auction slowed about the $3.7 million to $3.8 million mark but quickly picked up again at $4 million. The reserve was $3.9 million, and the auction lasted 11 minutes from start to finish in front of a crowd of 150.
It was one of 607 homes scheduled to go under the hammer in Sydney on Saturday. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 76.6 per cent from 364 reported results, while 58 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Vendor Kim Ward was present at the auction and was happy once it went past the reserve.
“Over the moon. I had my magic number. I was very, very happy. I just did it at the right time. Everything worked in my favour with interest rates not going up. And not having any competition in that price bracket in my area,” she said.
The vendor is relocating locally to help her daughter with her grandchildren. Both bidders at the auction live in the area.
The Pymble home attracted two active bidders.Credit: McGrath
Selling agent James Sutton from McGrath Wahroonga said the location, size of the block and north-facing aspect were major drawcards.
“Pymble has performed really well this year. So the stock is still quite tight. That’s creating high levels of competition for the properties that are on the market. We’re finding open numbers are really strong, and active buyers are more common now than they were last year.”
The house last traded for $1,625,000 million in 2006, records show.
Elsewhere, a state-of-the-art waterside home at 3 The Esplanade, Drummoyne, sold for $7,050,000.
Three registered to bid, and two actively participated in the auction for the five-bedroom, four-bathroom home boasting 180-degree views and guided at $6.5 million.
Bidding opened at $6 million and increased by $100,000 with each bid until the final $50,000 raise.
The buyers, a family from the city, are looking forward to a lifestyle change and are now planning to buy a boat.
Selling agent Daniel Patterson from CobdenHayson Drummoyne said the vendor was extremely happy and would be upsizing locally, adding the result set a new street record.
“A lot of people are trading their property well. And that’s following up the food chain. In some ways, the ripple effect, everyone selling whatever they’re selling, and therefore, being quite aggressive and ambitious on the next purchase,” he said.
The home last traded for $580,000 in 1995, records show.
AMP Capital chief economist Dr Shane Oliver said Saturday’s 76.6 per cent clearance rate shows the auction market has continued to strengthen.
“76.6 per cent is a fairly solid outcome. It will probably get revised down to around 74 per cent. But it’s still pretty solid,” he said.
Oliver said the clearance rate was being supported by buyers showing interest but the stock was low.
“Post-Easter you often see the listings have fallen again. And so consequently, buyers out there pick up bargains after the slump in prices, but there’s not a lot of listings.”
Oliver expects a slowing down in activity as we go into winter and warns we are yet to see the impact of 880,000 people on fixed-rate mortgages reset from 2-2.5 per cent to 5.5 per cent, which could lead to distressed selling.
A redbrick knockdown in Lakemba sold for $1,561,000, selling $61,000 above the $1.5 million reserve and $1.4 million to $1.5 million guide.
Bidding opened at $1.3 million for 35 Dennis Street, and 30 bids were placed over a rapid 15-minute auction.
Eight registered to bid, and four bid actively for the property, which was on the market for the first time since the 1940s.
The site is within walking distance to the Ramadan night markets, Lakemba train station and the local mosque.
The successful bidder was a Bangladeshi family keen to develop a family home close to the mosque.
Selling agent Navid Nawaz, from Ray White, said the market for houses was in extremely high demand at the moment.
In Wiley Park, an investor bought a two-bedroom unit for $330,000. Three registered and actively bid on 6/624 Punchbowl Road.
Bidding opened at $280,000 and went quickly above the $300,000 guide. This sale was the most affordable in reported auction results in Sydney on Saturday. The investor plans to rent the unit out for $380 per week.
Selling agent John Yatman, from Ray White Punchbowl, said more investors were looking to jump into the market due to increased returns.
The home last traded for $243,000 in 2003, records show.