‘Absolutely cooked’: Fury after Sydney house sells for over $4.1 million

A red-brick Sydney home sold for a staggering price after a fierce bidding war at auction this weekend. Aussies are convinced it’s proof the housing market is “cooked”.

Sydney’s housing market has been dubbed “absolutely cooked” after a humble, one-storey red brick home was snapped up by a British couple for over $4 million.

The four-bedroom home in Lane Cove sold at auction on Saturday for a whopping $4,165,000 - more than $600,000 over reserve.

Touted as a “prized family opportunity”, the brick house – which dates between the 1920s-1950s – boasts two bathrooms, a backyard, four bedrooms and a “traditional kitchen”.

“Perfectly configured for a laid-back family lifestyle, this wonderful home offers incredible internal space that spills out to a beautiful garden sanctuary”, the property’s listing reads.

Selling agent Sam Lloyd from McGrath Estate Agents said there was “plenty of interest” in the 695 sqm property, with its prime location – near the suburb’s retail and restaurant precinct, ‘The Canopy’ – the “main attraction”.

“Finlayson Street, is one of the premier streets in Lane Cove. It’s a short walk to The Canopy, which is a massive draw card,” Mr Lloyd told news.com.au.

“It’s also one of those original homes and most buyers were looking at it as something to renovate or possibly knockdown and rebuild.”

58 Finlayson Street, Lane Cove, sold for over $4.1 million. Picture: Domain

The house boasts two bathrooms, a backyard, a sunroom, four bedrooms and a “traditional kitchen”. Picture: Domain

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Six registered buyers turned up to Saturday’s auction, with at least four bidding for the property.

In the end, the house was snapped up by a couple from the UK with young kids who are looking to renovate.

“The people who purchased it were the opening bid. (The bidders) were actively bidding into the high threes, and two of them pushed it above the four mark,” said Mr Lloyd.

“As far as we know, they will definitely do some work to it to make it their family home.”

Mr Lloyd said both himself and the owner were “surprised” by the high price of the property – which had a reserve of $3.5 million.

“It was definitely above our expectations” he said.

“We always knew that it was a premium street and a great location. We’re definitely surprised that it got to that level but we’re very happy with it.”

Six registered buyers turned up at Saturday’s auction, with at least four bidding. Picture: Domain

The house was snapped up by a couple from the UK with young kids who are looking to renovate. Picture: Domain

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The “crazy” price also shocked those online, with many expressing outrage over Sydney’s rising house prices, including outspoken Freelancer chief executive Matt Barrie.

“Sydney house prices rapidly approaching $5m. Absolutely cooked,” Mr Barrie wrote on X.

“$4 million for the house, plus another $2-3 million to demolish and rebuild. The reality of living in Australia where even the top one per cent income earners face significant costs for home ownership,” one person commented on Mr Barrie’s post.

“Our economy is out of control, what a ridiculous price for an average house,” another wrote.

“That’s some crazy pricing! I hear Adelaide is lovely this time of year …” said another.

The multimillion-dollar price shocked many online. Picture: Domain

According to Domain, the median house price for a four bedroom home in Lane Cove is $3.505 million.

However, Mr Lloyd said a “nicely renovated” four bedroom home can sell for over $4 million.

Earlier this month, a five bedroom home a few doors up from the property, at 52 Finlayson Street, sold for $5,935,000, setting a new suburb record.

“Lane Cove is a lovely family area. It’s also very central. You’re almost one bus stop away from the city. It’s easy to go west … it’s very central to getting to all parts of Sydney,” said Mr Lloyd.

Saturday’s auction was one of 1218 scheduled in Sydney this week, according to Domain.

Homeownership dream slipping ‘out of reach’

Sydney’s house prices have increased by 19.9 per cent over the last three years, according to Finder.

Berrima in New South Wales’ Southern Highlands and Lilyfield in Sydney’s inner west are the two least affordable suburbs in the state for houses, with median house prices of $2,400,000.

Graham Cooke, head of consumer research at Finder said the dream of owning a home in Sydney is “slipping further out of reach for many”.

“For prospective buyers, it takes significant planning, research, and financial sacrifice,” Mr Cooke told news.com.au.

“It often means taking on a larger home loan, working longer hours, and setting aside more for stamp duty and mortgage repayments.

Mr Cooke said the rise in house price, which has increased about five times as fast as apartment prices, has left many buyers turning to apartments.

“The average house costs about 40 per cent more than the average apartment, but also comes with a lower probable capital gain – house prices have risen much faster than unit prices,” he said.

“Units are a more affordable entry point to the market.”

Sydney’s house prices has increased by 19.9 per cent over the last three years. Picture: Supplied

Mr Cooke said prospective home buyers need to make sacrifices such as moving further away from the CBD, and putting up with longer commute times.

“You don’t want to be spending more than 30 per cent of your income on mortgage repayments, and it’s good to give yourself a buffer,” he added.

“It’s a good idea to look at all the schemes, incentives, and grants that could help you buy a home.

“Once you do buy a home, your mortgage will likely be your biggest expense, so it’s crucial to shop around for the most competitive deal.”

In a welcome relief for homeowners, the Reserve Bank announced on Tuesday it has decided to cut the cash rate to 4.1 per cent. 
“There will definitely be increased interest in the housing market now, but it will really kick off if we get another rate cut,” Saud Mr Cooke, adding “whether that happens will depend on inflation”.

Mr Lloyd said he believed the rate cut will make buyers more confidence to bid at auction and make offers.

“Whereas previously, people were just standing back waiting to see what was happening,” he said.

Originally published as ‘Absolutely cooked’: Fury after Sydney house sells for over $4.1 million