A crowd of about 80 people, including a dozen bidders, swarmed the auction for a house in Sydney’s northwest, giving the seller more than they bargained for.
Spectators at an Eastwood auction might think they’d stepped into a time machine and were flashed back to last year, when the Sydney housing market was spinning on all cylinders.
There were 12 registered bidders for the property on Abuklea Rd, one of the busier traffic routes in the area, and a crowd of about 80 people in the backyard watched the bidding.
Nearly 40 buyers had applied for a sales contract for the modern four-bedroom duplex from Tracy Yap Realty’s agent Fiona Lee, and more than 100 groups attended the open for inspections.
MORE: How to Get a Home for Free
Single Badgirl’s $2 Million Glamor Path Revealed
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 the sellers had expected a much lower price and were pleased with the surprising result.
The Eastwood sale came as many other auctions in Sydney failed to produce results for the sellers, with some properties going up for auction after no bids were placed.
Other auctions were called off after sellers withdrew their homes due to low buyer interest. The typical auction that did go through had three to five bidders.
Auctioneer Chris Scerri, the director of Scerri Auctions, said a dozen registered bidders for the home of Abuklea Rd was a phenomenal turnout in today’s market.
It showed that ‘A-tier’ properties still attracted competition from buyers, Mr Scerri said. “It’s the B-tier, C-tier properties where the sellers may need to adjust their expectations,” he said.
Ms. Lee attributed the higher result to its location near the most desirable schools in the area, 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 often been seen at open houses and auctions over the past year.
Just $1000 separated her last bid from the underbidder’s highest bid. The underbidder had stated during the auction that he was attending three other auctions that day.
“That says a lot about the current market,” said Mr. Scerri. “Buyers will walk away if it’s over their budget because they have other options.”
The property was one of just over 1,000 houses set to go up for auction in Sydney this week, up from the week before. Preliminary indicators suggested the auction success rate would be similar to last week, when the clearance rate was 55 percent. Nearly half of the properties considered “cleared” have been sold through pre-auction agreements.
An auction clearance rate of less than 60 percent has historically been correlated with a drop in prices in Sydney. Last month, the city median fell 0.1 percent.
NEIGHBORHOOD BUYS UNIT FOR FAMILY
A resident of a dense residential block in South Cronulla seized the opportunity to buy his relatives one of the neighboring apartments at an auction.
The property at 4-6 Inglara Ave was sold under the hammer for $1,865 million, increasing the reserve by $40,000. Five buyer groups have signed up to bid with Gibson Partners’ sales agent Ivan Lampret, who said there was great 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 a stone’s throw from the ocean came up for sale.
FIRST TIMERS BEAT 10 RIVAL BIDDERS
An initial pair of home buyers beat 10 other registered bidders to get the keys to a dilapidated house on a 1125 sq ft block.
The property on Pringle St was listed as a rebuilding opportunity and the couple is said to be planning to build their “dream home”. They paid $1.13 million, $155,000 above the reserve price, for a crowd of 25 people. Ray White salesman Joseph Nassif said, “Premium properties still get top-notch results.”
WITH AIDAN DEVINE
Originally published as Sydney Auctions: Eastwood Home attracts unexpected price after dozens of bidders register