Ambitious vendors face the facts in buyers’ market
Spring has seen weakening clearance rates for prestige home sales, with millions trimmed from the asking prices of properties in some of Australia’s most exclusive postcodes.
Vendor discounting is increasingly common, with big drops between ambitious prestige asking prices and eventual sales. Sydney sellers are slowly realising spring seems set to be a buyers’ market, as highlighted by weakening clearance rates.
Former Westfield executive Mark Ryan, who remains an adviser to the Lowy family, and his wife Deborah have abandoned their $16.5m hopes for their four-level Paddington terrace.
They now have a $14.2m asking price after a recent failed auction marketing campaign through Ray White agent Elliott Placks.
With a coveted north-to-rear aspect, the four-bedroom, four-bathroom Glenmore Road terrace cost $2.52m in 2003.
The revised asking price would still set a Paddington record – a sorry saga for Jacqueline Bailey, who has had three unsuccessful auction campaigns through Sotheby’s Maclay Longhurst as she tries to sell her nearby Brompton House abode.
Bailey almost sold it for a $14m record in June last year through Longhurst, but the overseas buyer decided not to proceed to settlement.
Inspired by Versailles, Bailey has decorated the twin terraces over the past five years.
Buyers are still being advised of a steady $14m price.
Paddington’s record price remains $13.5m, set when retiring ASX chairman Damian Roche and his wife Justine bought from ex-Canva chief financial officer Damien Singh and partner Alexandra Pack in 2023.
Fiona Tudor Brown, the founder of Dicker Data, is the latest Paddington owner to list, second time around, with $7.5m hopes on Windsor Street, up from the $6.6m guidance last year.
Buyers rule
The emergence of a buyers’ market is being seen across Sydney, from the beach to the bush.
The forthcoming auction price guidance for the Bondi Beach abode of interior designer Darren Palmer and his cosmetics industry operative husband Olivier Duvillard has been trimmed by $1m.
The initial $9.5m expectations now sit at $8.5m, through Raine & Horne agent Ric Serrao.
It has had more than 7500 views on realestate.com.au.
At Balmain East, downsizer Diane Mahony listed Brookfield on the waterfront with a $18m plus price guide in late 2022 with its recent settlement revealing a $15.6m sale for the restored 1895 home.
The Simmons Street property bought by Mahony and her late estate agent husband Alan Kittle in 2014 for $6.5m has been sold to the beverage entrepreneur Peter Brooks.
The $22m hopes held for Bayview’s Chateau Narla acreage have culminated in its $13.85m sale to Chris Gregg, founder of the financial software company Lightyear, and his wife Justine.
The six-bedroom, 10-bathroom mansion sits in gardens that “mimic a Versailles chateau”.
It seems Versailles pitches are perhaps a marketing mistake.
Record in Artarmon
The nation’s top advised weekend sale was a record-setting auction in Sydney’s Artarmon.
The six-bedroom, four-bathroom house on 885sq m at 32 Tindale Road fetched $6,213,000 through Ray White agent John McManus.
The sandstone 1925 Californian bungalow with a double storey rear addition by Sanctum Design Consultants last sold in 2001 for $1,105,000.
Artarmon’s prior record was $5.85m last November.
Only seven of the 31 prestige Sydney offerings were advised as sold.
Some 864 auctions were held across Sydney last week, an 11 per cent weekly jump. The preliminary clearance rate eased to 70 per cent from 73 per cent, which was revised down to 66 per cent on final numbers.
Success rate slipping
The national preliminary success rate fell below the 70 per cent mark for the first time in six weeks, coming in at 69 per cent, down from the prior week’s 71 per cent preliminary result, which was then revised down to 63 per cent.
CoreLogic’s Tim Lawless noted the 2387 auctions held over the past week made it the busiest period since the rush prior to Easter.
Auction numbers rise this week to 2800, before briefly dropping back, given the AFL grand final distraction.
CoreLogic reports higher than average national private treaty listings. The four weeks ending September 8 saw 41,000 freshly advertised listings, 5 per cent higher than the same time last year and 17 per cent above the five-year average.
Melbourne gets busy
Melbourne was the busiest weekend capital with 1114 auctions. Its preliminary clearance fell to 68 per cent, from 71 per cent on the prior week, which was revised down to 63 per cent once finalised.
Around 1300 auctions are scheduled this week across Melbourne.
Melbourne’s priciest result was $6.2m at Albert Park. The renovated double-fronted 245 Bridport Street sale came shortly after being passed in at $6m through Simon Gowling at Jellis Craig, who had two bidders.
The price guidance had been $5.5m to $5.95m. It last sold in 2012 for $2.6m.
The nearby classic Hawthorn brick-built 16 Greig Street offering was passed in at $5.87m, having come with $5.25m to $5.75m guidance.
Buyers agent Simone Clarke reported there were just two bidders, while noting the 46 prestige Melbourne auctions prompted a weakening 61 per cent clearance rate, with most not having competitive bidding.
Adelaide shines
Adelaide saw 82 per cent of its 153 auctions finding buyers. Its top price was $3.15m for a 1910 four-bedroom, two-bathroom house at 37 Halsbury Avenue, Kingswood, sold through Neale Realty.
Some 65 auctions were held across the ACT, with the nation’s weakest 52 per cent clearance rate. Brisbane returned a preliminary clearance rate of 64 per cent, with its top sale a five-bedroom residence at 98 Hawdon St, Wilston for $3.85m.
Perth’s top sale notification came when 42 Nidjalla Loop, Swanbourne fetched $3.15m, with Candie Italiano at Ray White facing three bidders.
“The buyers moved here a year ago from the UK and had been looking for something coastal,” Ms Italiano said.
The upsizing sellers had paid $2.1m in 2020 for the three-level Gransden Homes-built home.
Sounds like a plan
One of the first off-the-plan Saturday sales launches in quite a while saw TWT Global secure 15 apartment sales totalling around $30m in the first release of their project on Sydney’s lower north shore, on the border of St Leonards and Crows Nest. Buyers were keen to secure a foothold, combined with a two-year completion timeline, “especially given the new Metro station’s convenience”, Murray Wood at Belle Property said.
The Collective pricing starts from $935,000 for one-bedroom apartments.
“After 10 years of planning and development, it’s fantastic to see such strong interest,” said TWT GM Gavin Zhang.
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