By Kate Burke
A two-bedroom terrace in Glebe sold for $3.08 million at auction on Saturday after a bidding contest between two couples hoping to nab the property for their adult children.
The local couple was trying to help their first-home-buyer daughter enter the market, while the other couple bid on behalf of their son who was holidaying overseas. Four downsizers also registered to bid on the home at 32 Eglinton Road.
The auction was lightning quick, opening on a bid of $2.5 million, then jumping to $2.6 million. Soon after, the offers climbed in $50,000 increments to $3.05 million as four parties competed for the 217-square-metre block.
The bidding dropped to $5000 jumps before the fall of the gavel, with the couple acting on behalf of their son, winning the keys within minutes.
The result was well above the $2.7 million reserve price and the $2.5 million to $2.7 million price guide, which was revised up from an initial guide of $2.4 million during the campaign.
The auction of 32 Eglinton Road, Glebe, on Saturday, February 17.Credit: Rhett Wyman
Ray White Glebe’s Matthew Carvalho said the result was above his expectations, adding that the auction market had made a solid start this year.
“So far, so good, but I am finding that the market is somewhat price sensitive,” he said. “I think that unless buyers still see some value, they are holding back on some things.
“But once they see that there is some competition they are prepared to pay up.”
Records show the deceased estate last traded for $1,027,000 in 2004, trebling in value in the past two decades.
It was one of 759 Sydney properties scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 74.2 per cent from 481 reported results, while 82 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Coogee, there was a battle of investors for a block of four three-bedroom units, which sold for $6,925,000 – $1.4 million more than its reserve.
The bidding for 77-79 Mount Street started at $5,525,000, topping the $5.5 million price guide and reserve, and four of the 11 registered buyers made offers, pushing the price up in mostly $50,000 and $25,000 jumps.
The winning bid was made by an eastern suburbs couple who plan to move into one of the units and rent out the rest.
The 597-square-metre block sold through Veronica Perez, of PRD Perez Real Estate, who said there had been a strong return in investor demand off the back of a competitive rental market.
In Arncliffe, a dozen buyers registered to bid on a four-bedroom house, which sold for $2.51 million, well above the suburb’s median house price of about $1,576,000 – which makes it one of the most affordable pockets within 10 kilometres of the CBD.
The bidding for 15 Spring Street started strong, opening at $2.05 million, topping the $2 million price guide, which was revised up from an initial guide of $1.8 million based on buyer feedback.
The bids rose in $50,000 increments to $2.35 million – passing the $2.25 million reserve — as four buyers made offers. Bidding then slowed to $25,000 and then $5000 increases.
A local upsizing family were the successful purchasers of the corner block, but many of the interested buyers were from the inner west, said selling agent Josh Vella of McGrath Sans Souci.
“Arncliffe and surrounding suburbs such as Bexley and Kingsgrove, are getting a lot of traction right now because a lot of the [market] heat in the inner west is pricing out buyers, and they’re realising these suburbs are a bit more affordable. If you were to put this house in Marrickville, you would probably be paying $3 million, and it’s only an extra five to 10 minutes to the city.”
Vella said buyer interest had been increasing recently as expectations grew for cash rate cuts later this year.
“I’ve been speaking with a lot of buyers who are saying they want to buy before prices go up further, off the back of any rate cuts, and with the limited amount of stock on the market, that is really driving prices through the roof.”
Records show the house last sold for $205,000 in 1994. It has been renovated since.
In Abbotsford, a three-bedroom house on the market for the first time in almost four decades sold for $4,900,100.
The original-condition three-bedroom house at 76 Wymston Parade, opposite Hen & Chicken Bay, drew six registered bidders – mostly developers looking to rebuild on the 468-square-metre block.
Bidding opened at $4.5 million, and rose quickly to start, before stalling at about $4.8 million. When it eventually resumed, it was in smaller increments of $5000, then dropped lower, ending in $100 raises.
The result fell short of the $5 million price guide and reserve, which selling agent Craig Stokes attributed to easements on the block, which deterred some developers. He believed the buyers would rebuild a home for themselves on the site.
The property last traded for $84,000 in 1985, records show.
In Paddington, a two-bedroom terrace at 6 Norfolk Street sold for $2.7 million, topping the reserve by $300,000.
The bidding for the 101-square-metre block kicked off at $2.2 million and climbed in $50,000 jumps the whole way, as three of the four registered bidders competed. A buyer’s agent made the winning bid.
The deceased estate was sold through Maclay Longhurst, of Sydney Sotheby’s International Realty. The result was well above his expectations, given buyer feedback had been around $2.2 million to $2.4 million through the campaign. The property was marketed without a price guide.