The federal election result helped boost property sales in Sydney, offering sellers unexpected prices, but one type of property continued to pass without offers.
Rare properties in Sydney classified as ‘A-grade’ real estate sold for huge prices at auction this week following the federal election helped boost buyer confidence.
There have been several sales well beyond reserve in coveted pockets of the city, with agents revealing that the types of properties exceeding expectations were often fully renovated or modern homes.
Buyers were much more reluctant to bid on properties in need of work or those in unpopular locations like busy roads and many of these properties have moved on.
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Some of those properties had also been auctioned off with reserves based on comparable sales months ago, when the hot market meant buyers were willing to splurge even on flawed properties.
One of the highest prices paid under the hammer this week was for one of Randwick’s largest homes.
The gargantuan Victorian terrace on The Avenue, transformed into what the agent described as a “modern masterpiece”, has been auctioned off for $7.01 million.
The auction opened with a seller’s bid of $7 million and only one bidder lifted their paddle after it was placed. No further offers followed, the offer of $7.01 million was declared the final price and the house was sold.
There had been an attempt by another registered bidder to make an opening bid of less than $7 million, but it was rebuffed by auctioneer Damien Cooley as “too far”.
The house was listed with Agent Bethwyn Richards of the Agency.
A Dulwich Hill home sold for around $460,000 off reserve at an auction attended by six registered bidders. The price was $2.461 million.
Sales agent Sharon Skrabanich of Harris Tripp said the Maddock St house was a rare offer for the area and included an attic large enough to serve as a bedroom.
“We didn’t anticipate this kind of energy at the auction,” she said.
“Now that we have finished the election, there is still a shortage of housing stock, especially four-bedroom houses. Many families who want them have been looking for more than a year.
“There are also a lot of older, smaller investment stocks. Most (of the houses) need too much work and have not been maintained.
Auctioneer Chris Scerri, director of Scerri Auctions, said buyers were continuing to search for homes now that the election was over. “There were question marks before the election, but now that it’s over there’s a good feeling there.”
There were over 1,200 auctions scheduled for this week – the first time in weeks that Sydney has had over 1,000 auctions scheduled in a single week.
Last week, with the election looming on sellers’ minds, there were only 532 auctions.
Sellers were under pressure to cut prices for much of the month.
Weekly auction clearance rates, which measure the proportion of scheduled auctions that produced a sale, hovered around the 55% mark for most of May.
The clearance rate hit an annual low of 53% earlier this month, but fell back to 58.4% last week.
This type of success rate is historically correlated with lower prices.
The bulk of the properties that were supposed to go under the hammer and did not sell were taken off the auction before the auction started.
Many of the weakest urban markets this month are those that led the price surge in 2021.
This included the North Beaches, where only 50% of auctions were successful for sellers, and the Hills District where the success rate was just 37.5%.
From some perspective, Sydney-wide auction clearance rates were around 75-85% for much of 2021. And in areas like the northern beaches, they’ve reached over 90% in some weeks.
Originally published as Sydney Auctions: Results improve for sellers in first weekend after Federal Election