Sydney auctions: Horror houses sell for shock prices after rate cut
A home described as the “worst ever” and other collapsing houses have sold for unbelievable prices following the recent rate cut.
A hoarder home, a collapsing house overrun with vegetation and other uninhabitable homes have pulled in huge prices at auction as buyer competition heats up following last month’s interest rate cut.
One of the more shocking sales was for a Paddington terrace left untended for close to 16 years, which sold under the hammer on Saturday for $2.8m.
The agent Georgia Cleary, a sales veteran of 35 years, said prior to the auction that it was the “worst” houses she had ever seen in Paddington.
The McGrath agent estimated the historic Liverpool St home, which cannot be knocked down, would require $600,000 to $1.5m in renovations to bring it up to the standard of nearby homes. The price was $700,000 over reserve.
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Parts of the deceased estate, which has been vacant since 2009, were cordoned off with hazard tape and the interior revealed rooms of crumbling plaster and old plates packed into a corner. There was a crowd of about 100 people at the auction, including 22 registered bidders.
The buyer was reported to be planning a flip.
The current shell of a home has three-bedrooms and one bathroom with dual access on a 101 sqm block of land.
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There were nearly 1000 auctions scheduled this week across Sydney, with agents revealing that the market was picking up since the RBA announced a rate cut in February.
JUNGLE HOME SELLS IN WAHROONGA
On the north shore, a collapsing house visitors were barred from entering due to safety concerns sold for $1.3m – $400,000 higher than the reserve price.
The 884 sqm property on Strone Ave in Wahroonga had been vacant for the past three years.
Selling agent Bronwen Lipscombe of McGrath Wahroonga said the property had been poorly maintained before then due to the owner’s advanced age. Vegetation had taken over much of the block.
“The floors were collapsing, the roof was collapsing,” she said.
The buyer was reported to be planning a knockdown rebuild and was in the process of drawing up plans with their architect.
DERELICT TERRACE IN REDFERN
A horror terrace in Redfern requiring at least $300,000 in repairs to fix the leaking roof and a multitude of other problems changed hands at auction for a price that left onlookers stunned.
It’s understood the two-bedroom terrace had been inhabited by an alleged hoarder and was left vacant for at least a year – possibly longer – after he passed away.
The agent, Namir Mikha of Adrian William, said the home had required a $10,000 clear out.
“It looked like a hoarder’s place,” he said. “There was just so much junk. It was also packed with furniture that went halfway to the ceiling.”
The reserve was set at $1.2m. The home then sold under the hammer for $1.35m – $150,000 over. Ten parties registered to bid.
The buyers were reported to have purchased the home for their adult children, who will move in after a renovation.
ORIGINAL HOME SELLS FOR $3.8M IN BRONTE
A dated two-bedroom house held in the same family for 67 years sold at auction for $3,825,000 – $725,000 above the reserve.
The home on Hewlett St in Bronte last sold in 1958 for £10,000, equivalent to about $400,000 in today’s money, according to the Reserve Bank’s inflation calculator. There were a dozen registered bidders.
Selling agent Nick Wiggan of Ray White Eastern Beaches said the original condition was a draw for renovators.
“It was only two bedrooms but most buyers were factoring in a reno. The value was in building it up a level … that kind of home would be worth over $5m.”
$1000 BIDS PAY OFF IN CARLINGFORD
A four-bedroom house in Carlingford offered to the market for the first time since it was built 37 years ago sold at auction for just over $3m.
The price for the Trigg Ave home was $315,000 above the $2.7m reserve issued to selling agents Stone Castle Hill.
Auctioneer Stu Benson received 38 bids from the 13 registered bidders, with the eventual buyer only making bids in $1,000 increments. “At every challenge, the same bidder would calmly bid another $1,000,” Mr Benson said.
Originally published as Sydney auctions: Horror houses sell for shock prices after rate cut