A crowd of around 80 people, including a dozen high bidders, thronged the auction of a house in north-west Sydney, helping the seller get more than he bargained for.
Onlookers at an auction in Eastwood could be forgiven for thinking they’ve stepped into a time machine and been transported back to last year when Sydney’s property market was in full swing.
There were 12 registered bidders for the property on Abuklea Rd, one of the busiest roads for traffic in the area, and a crowd of around 80 people were in the backyard watching the bidding.
Nearly 40 buyers had requested a bill of sale for the modern four-bedroom duplex from agent Fiona Lee of Tracy Yap Realty and more than 100 groups attended the opening for inspections.
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The hammer eventually fell to $2,011,000 – $211,000 above the reserve price and more than $500,000 above the opening bid.
Ms Lee said sellers expected a much lower price and were delighted with the surprise result.
The Eastwood sale came as many other Sydney auctions failed to deliver results to sellers, with some properties going under the hammer after no bids were placed.
Other auctions have been canceled after sellers pulled their homes due to lack of interest from buyers. The typical auction that took place had three to five bidders.
Auctioneer Chris Scerri, director of Scerri Auctions, said a dozen registered bidders for the house in Abuklea Rd was a phenomenal turnout in today’s market.
It showed that “A-level” properties still attracted competition from buyers, Mr Scerri said. “These are the B- and C-level properties where sellers may have to adjust (their expectations),” he said.
Ms. Lee attributed the higher result to the location near the area’s most sought-after schools, quality construction and the fact that several bidders had been looking for a home for over a year.
This included the successful buyer – a local who had been seen frequently at open houses and auctions over the past year.
Only $1,000 separated his last bid from the underbidder’s highest bid. The underbidder had declared at the auction that he had three more auctions to attend that day.
“That says a lot about the current market,” Mr. Scerri said. “Buyers will walk away if it’s over their budget because they have other options.”
The property was one of more than 1,000 homes due to go under the hammer in Sydney this week, an increase from the previous week. Preliminary indicators suggest that the auction success rate would be similar to last week, when the solve rate was 55%. Nearly half of the properties considered “cleared” were sold via pre-auction bids.
An auction settlement rate below 60% has always been correlated with lower prices in Sydney. Last month, the city’s median fell 0.1%.
NEIGHBOR BUY UNIT FOR FAMILY
A resident of a tightly-held block of units in South Cronulla took the opportunity to buy his family members one of the neighboring apartments at auction.
The property at 4-6 Inglara Ave sold under the hammer for $1.865 million, pushing the reserve up by $40,000. Five groups of buyers have registered to bid with sales agent Ivan Lampret of Gibson Partners, who said there was strong interest in the lead-up to the auction. “About 40 groups passed the inspections,” he said.
Auctioneer Andrew Cooley of Avenue Auctions said the auction was well contested because few properties in the building one block from the ocean have ever come up for sale.
FIRST TIMERS BEATEN 10 RIVAL BIDDERS
A first couple of buyers beat out 10 other registered bidders to get the keys to a dilapidated house on a 1125m² block.
The Pringle St property has been listed as a rebuilding opportunity and the couple are said to have planned to build their ‘dream home’. They paid $1.13 million, $155,000 more than the reserve price, in front of a crowd of 25. Ray White sales agent Joseph Nassif said, “Premium properties always get premium results.”
WITH AIDAN DEVINE
Originally published as Sydney auction: Eastwood home attracts unexpected price after dozens of bidders register