By Tawar Razaghi
A Gladesville house approved for an extension sold for $2.8 million on Saturday to a young family upsizing from nearby Hunters Hill.
Four bidders turned out to compete for the four-bedroom house at 23 Isler Street, which had scope to add a second storey and a swimming pool.
But it was a slow start. The auctioneer was met with silence for several minutes before the bidding started at $2.45 million – below the price guide of $2.65 million.
Three of the four registered buyers, all owner occupiers looking to upsize, cautiously increased the price until the home sold for $2.8 million to a Hunters Hill family. The reserve was $2.7 million.
Successful buyer Ben Marcos and his wife Monica had been looking to upgrade from their townhouse for some months.
“We’ve been looking for a little while, but it’s been unpredictable with rate rises and what that looks like. It’s a very unpredictable market,” Ben said.
McGrath Hunters Hill partner and selling agent Benjamin Mulae said buyers were drawn to the home for its future potential, and noted the guide had been revised upwards from an initial range of $2.5 million to $2.6 million.
“It’s a live-in now home, but there’s scope to grow into it. And with the cost of moving being so prohibitive and stamp duty, and refinancing, this is a home you can grow into,” Mulae said.
He noted that good competition was continuing for homes, despite rising interest rates.
“We’re still in a market where there are enough other purchasers that don’t seem to be affected by that [rate rise] overly negatively. If that changes, then the balance might change.”
The home attracted four registered buyers, all owner occupiers hoping to upgrade.Credit: Flavio Brancaleone
The property last traded for $2.12 million in 2018, records show.
The home was one of 589 Sydney properties scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 70.8 per cent from 384 reported results, while 73 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Forest Lodge, an investor sold a one-bedroom unit to a first home buyer for $800,000.
Six buyers, a mix of first timers and a downsizer, registered to bid on the property at 305/136 Ross Street. It had an initial price guide of $650,000, which was later lifted to $775,000 based on buyer feedback.
The auction for the unit with no parking was quick to start at $700,000, and five of the registered bidders made offers.
The successful purchasers only bid twice: coming in at $790,000 and having to contend with just one $5000 counter bid, before they placed another $5000 on top to walk away with the keys. The reserve was $750,000.
Selling agent Matthew Carvalho of Ray White Surry Hills said it was a competitive auction between potential first home buyers who were looking to take advantage of the increased price thresholds for stamp duty exemptions and concessions.
The one-bedroom unit sold for $800,000, qualifying for a first home buyer stamp duty exemption.Credit: Domain
“Given the price point of the unit, it’s stamp duty exempt. [The state government] lifted the threshold from $650,000 to $800,000. It was good timing [for the auction of the unit],” Carvalho said.
The vendors were selling their investment property after they had upsized their primary home.
“And to free up a bit of money and reduce their exposure,” he said.
“There’s definitely more investors selling at the moment, probably due to the rise in interest rates. Investments are always the first thing to go.”
The 73-square-metre unit last traded for $640,000 in 2012.
In Rhodes, a six-bedroom house at 50 Llewellyn Street sold for $3.85 million to an upsizer from Silverwater, but only after they bid against themselves twice to meet the reserve.
The rental property, which is arguably on the best street in the high density suburb, had a price guide of $3.7 million. It last traded for $1.29 million in 2012.
Bidding began at $3.5 million, and only two of the four registered buyers participated.
It stalled at $3.7 million, and Cooleys’ auctioneer Michael Garofolo said a tough negotiation on the auction floor ensued as the vendor would not budge on their reserve.
The highest bidder had to increase their offer twice, first to $3.8 million, then to $3.85 million, to secure the keys, Garofolo said.
“The buyer made a comment that ‘It’s not me, it’s the bank’ [when asked to increase their offer]. They wanted to pay it, but they were hesitant because of interest rates,” he said. “Interest rates are definitely biting.”
He said the home, which was ripe for renovation, had no profit margins left for interested builders once it surpassed the $3.5 million mark.
The 696-square-metre block sold through Paul Pettenon of Raine & Horne Concord and Strathfield.
In Rozelle, a former pub converted into a three-bedroom home sold for $2,176,000.
The home at 120 Evans Street was guided at $1.65 million and was inspected by more than 180 groups.
Eleven parties registered to bid, but only four took part after bidding opened at $1.5 million.
About 80 bids and half an hour later, a young couple from Woollahra walked away with the keys after outbidding buyers from Paddington. The reserve was $1.85 million.
Selling agent Lynsey Kemp of Belle Property Balmain said the rapid pace of bidding meant some buyers were quick to drop out of the running.
“We lost a lot of buyers quickly. People were trying to work out what they needed to spend, others were working out their budget and where they saw value,” she said. “A few people came up to comment saying that was a big price. It was a stand-out and [the property] quite unique to the market.”