By Tawar Razaghi
A first home buyer bought a cute-as-a-button cottage in Balmain for $1,686,000 at auction on Saturday, outbidding eight other registered bidders.
The auction for the two-bedroom weatherboard semi at 42 Lawson Street had been brought forward by a week due to strong buyer interest. It had an initial price guide of $1.2 million, which was revised up to $1.3 million.
The home spans just 76 square metres internally, but that did not deter nine buyers from registering to bid – mostly first timers and some upgraders, all hoping to own a home with potential to expand.
The auction opened at $1.2 million and bidding rose quickly in $25,000 increments thanks to five active bidders, who pushed the price well above the $1.34 million reserve. The home sold to a Balmain first home buyer.
Cobden & Hayson Balmain’s Mark Bowis said homes like the cottage were hard to come by and highly sought after as a result, despite offering less floor space than the apartments some bidders were trying to upgrade from.
Nine buyers registered to bid on 42 Lawson Street Balmain.Credit: Nikki Short
“Their apartments were larger than the internals of the house,” Bowis said. “At this price point, buyers say I can get out of strata and add value. It shows the size of the buyer pool trying to get into the housing market and the scarcity of those types of home available.”
The 118-square-metre block last sold for $395,000 in 2000, records show.
Balmain’s median house price slid 2.8 per cent to $2,512,500 over the year to June, on Domain data.
The home was one of 745 Sydney properties scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 67 per cent from 458 reported results, while 113 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Auctioneer Jake Moore prepares to sell the Balmain home for $1,686,000.Credit: Nikki Short
Another semi-detached house at 936 Elizabeth St, Zetland was also fiercely contested, selling for $2.62 million.
Nine buyers registered to bid on the five-bedroom, three-bathroom terrace that was guided at $2.2 million. The price was pushed well above the guide and its $2.3 million reserve thanks to four active buyers. It sold to a young couple, upsizing from the inner west.
Ray White Kingsford Ferry Suwito said it was one of few Zetland terraces on the market.
“One of the reasons it went up so high is because there is not enough supply [in this category],” Suwito said. “Quality properties are still performing. Most of the buyers are owner occupiers … and keen to pay a premium price [to get in].”
The home last traded for $651,000 in 1996.
A Dulwich Hill house sold for $3.24 million, more than six times what it last traded for about two decades ago.
Eight buyers turned out to compete for the charming three-bedroom home at 21 Hampstead Road, which records show last sold for $525,000 in September 2001.
The bidding was quick to start, opening at the $2.8 million price guide, which was revised up throughout the campaign from an initial guide of $2.6 million.
Two bidders went head-to-head, pushing the bidding past the $2.85 million reserve, before a third buyer entered the race at $3.1 million.
An eastern suburbs couple went on to make the winning offer, outbidding two families from Glebe and Dulwich Hill. Most buyers were looking to upsize, but the home also drew interest from some downsizers.
The Agency Inner West’s Shad Hassen said the result surprised the vendors and himself.
“We didn’t expect it to be at that level, we were pleasantly surprised by the result. Prices are moving, and the market is moving. These are not record-breaking numbers, but they’re etching up,” Hassen said.
Dulwich Hill’s median house price dropped 1.6 per cent to $1.87 million over the year to June, Domain data shows.
In North Ryde, an original home sold for $2,285,000 after strong competition pushed the price $405,000 above the reserve.
The three-bedroom house at 110 Eastview Avenue had no price guide and attracted 10 registered buyers – all owner-occupiers, including first-timers and groups hoping to get into the suburb for sub-$2 million.
But chances were slim for buyers hoping for a bargain as bidding started at $1.8 million and half of the registered bidders made offers.
The opening bidders, a family from Redfern, walked away with the keys. The reserve was $1.88 million.
Cooley Auctions’ Michael Garofolo said the bidding was slow to start but ended strong. He said competition for homes was easing as more properties were listed for sale.
“There’s enough stock out there to not jump over properties,” he said. “Buyers are a little bit more conservative and reserved – they’re feeling that there is more supply.”
The house sold through Anthony Sherif of Melrose Estate Agents. It last sold for $225,000 in 1993, records show.