A single-level Willoughby house that traded for $2.35 million in 2015 sold again for $4.83 million at auction on Saturday, leaving onlookers shaking their heads in disbelief.
Over 100 people gathered to watch the auction of 11 Glover Street, which had a Hamptons-inspired renovation, swimming pool and gourmet kitchen. Four parties registered and all four made bids.
Bidding opened at $3.7 million. Bids quickly jumped in varying increments ranging from $5000 to $50,000. Two bidders pulled out when the battle reached $4.5 million, which was $200,000 above the reserve.
A trio comprised of parents and their adult daughter continued to bid rapidly against a developer, who eventually secured the renovated property for $4.83 million for a knockdown project.
Three neighbours requested appraisals post-auction. The vendors, a professional couple, will be moving to the northern beaches.
Based on feedback, the guided price range for the single-level Californian bungalow was between $3.8 million and $4 million during the first week. The following week saw an increase to between $4 million and $4.1 million, then by the third week the guide was lifted to between $4.1 million and $4.3 million.
It was one of 617 homes scheduled to go under the hammer in Sydney on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 79.3 per cent from 421 reported results, while 54 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Selling agent John McManus from Ray White Lower North Shore said it was a non-conservation area, which is important for people who want to knock down and rebuild.
“Pretty ridiculous really. It’s a very basic bungalow that was renovated six years ago. Four bedrooms, three bedrooms and one bedroom being a study make up the fourth bedroom. It was a strong price,” he said.
“Chatswood used to be a hub where everyone used to buy and it’s just outgrown itself because there’s no stock; they’re moving to Willoughby and Artarmon.”
In the highest sale of the weekend, a glamorous Bellevue Hill home sold for about $33 million.
The seven-bedroom residence set on 2090 square metres at 85D Victoria Road was sold by the Breuer family and was first listed late last year.
Agents on the deal, Pillinger’s Brad Pillinger and Highland Property’s Bill Malouf, were unable to comment due to gag orders, but sources put the price at about $33 million.
It’s the third sale in as many weeks in the $30 million range in Sydney’s east. A Potts Point home listed for $34 million also found a buyer, while another Bellevue Hill residence traded for about $33.5 million.
In western Sydney, 35 people registered to bid on a four-bedroom home at 9 Rifle Range Road, Northmead.
Bidding opened at $1.25 million and six actively participated. The auction quickly climbed above the $1.4 million to $1.5 million expectations from buyer feedback, although the exact reserve was not disclosed. Increments narrowed until a final offer of $1.778 million secured it for a young family with children.
Selling agent Michael Mustapha from Ray White Parramatta Group said the area was a tightly-held pocket.
“People that typically sell in that area, normally they’ve been living there for about 50 years or so.”
PRD chief economist Dr Diaswati Mardiasmo said Saturday’s 79.3 per cent clearance rate shows Sydney’s market appears to be recovering.
“With the cash rate going up, and the chance that it will keep on going up, that has changed some people’s confidence levels. So considering that, 79 per cent is a good place to be. People are still active, people are still buying property. People are still attending auctions, they’re still bidding,” she said.
“We’re on the track of getting back into that strong Sydney market again, because we’ve had quite a decline in the Sydney market in terms of prices, since the cash rate started going up ... We’ve seen a bit of an uptick in the past couple of months.”
Ray White NSW chief auctioneer Alex Pattaro said the clearance rate from his point of view is a reflection of supply and demand.
“Interest rates are the highest they have been in years. And we’re still seeing clearance rates at 80 per cent. Very strong prices,” he said.
In Sydney’s inner west, a freestanding house guided at $2 million sold for $2.42 million at 30 Silver Street in St Peters.
Six parties registered and four actively bid as bidding opened bang on the guide of $2 million. The agent declined to reveal the reserve.
The buyers were a first home buyer couple who rent in the CBD.
Selling agent Bryan Mahlberg from LJ Hooker Newtown Group said the popularity of the property was its stylish touches.
“It had a total of 92 inspections, 12 contracts and six registered bidders. So that’s really strong. That’s a strong response to the market for St Peters just because of the quality appeal of the home.”
In Sydney’s east, a swish home just a four-minute walk to the sand located at 37 Gardyne Street, Bronte passed in on a vendor bid of $13.7 million. Selling agent Alex Phillips from PPD is expecting it to sell this week.