Sydney homeowners turn down $2m profit after Newtown auction
The owners of this Sydney home turned down a $2 million profit when it went under auction before finally agreeing to a record sale price.
Social media users have described the auction of a Sydney house as a “tragedy” and “ridiculous”, after it was purchased for $2.2 million in 2018 and was passed in at auction for $4.23 million.
The four bedroom, two bathroom terrace house in the inner west suburb of Newtown was described by the real estate listing as an “architect-designed character residence” that has never been lived in after being “completely rebuilt”.
A social media user described the situation as “Sydney Real Estate: A Tragedy In Three Acts”, which was accompanied by a picture of how much the house sold for in 2018, the price guide and where the bidding stopped before the house was passed in.
But the property agent confirmed to news.com.au that the home was sold after the auction following more negotiations between the highest bidder and the owners.
Sydney Real Estate: A Tragedy In Three Acts pic.twitter.com/aA9DnZ3HyI
— Byron Kaye (@byronkaye) July 17, 2021
Social media users were outraged by the difference in house price in just two years since it was purchased.
“I’m unsure this Reno doubled the value. Toilet brought inside; undercover parking, bigger kitchen, but is it $2m worth???” said one man.
“Jesus. How are my kids ever going to be able to afford their own home in this country? (Answer: they won’t. And that’s not fair),” wrote another.
“But I’m sure it’s the avocado toast keeping the kids out of the real estate market,” quipped one user.
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Another user pointed out that the house had previously sold in June 2004 for $1.1 million and prior to that it was bought in December 1996 for $220,000, showing the huge jump in prices.
Real estate agent, Shannan Whitney from Bresic Whitney Estate Agents in Darlinghurst, said the property sold an hour after the auction with negotiations between the highest bidder and the vendor.
Mr Whitney said he was “pleased with the outcome” but the vendors were not prepared to disclose the final price, revealing it went for between $4.23 million and $4.5 million.
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He added that the price guide had been adjusted to $3.9 million and that they had “verification” from the builders that the cost of the renovation was over $2 million.
“It was purchased and extensively renovated and rebuilt so it was quite an impressive project they undertook and completed. They did create a very impressive house,” he told news.com.au.
“The house was extensively restored in the front and it was rebuilt at the back by MCK Architects in the Eastern suburbs, that was the architectural firm. It was beautifully executed with a contemporary design and they had a commitment to a eco-friendly, sustainable working environment.
“So it was all battery and solar powered and to my knowledge it’s the most expensive terrace house sold in Newtown. I don’t think there has been a terrace house sold over $4 million but the price was indicative of the quality of the house.”
The house originally had five bedrooms but one was removed as part of the renovations.
It featured dual access, a double garage, multiple living spaces, air con throughout, double glazing, hardwood floors, a Tesla charger and DA approved green roof, according to the real estate listing.
“A brand new, never lived in architect-designed character residence on 285sqm of land, this home has been completely rebuilt with impressive attention to detail,” promoted the real estate listing.
“With high-end finishes throughout, it’s a statement residence of utmost quality in the heart of King Street’s dining scene.”
The median property price for a Newtown house over the last year sits at $1,628,500, according to realestate.com.au.
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