Buyer pays $2,226,000 for a city bolthole in Chippendale

An expansive warehouse-style apartment in Chippendale that was held as a city bolthole for 21 years has traded hands at auction to an interstate buyer seeking the same convenience for $2,226,000.

The two-bedroom residence in a boutique block of eight at 5/3 Queen Street, spanning 167 square metres, attracted seven registered buyers, with three bidders taking part. Two were after a city bolthole and the rest were either upsizers from apartments or downsizers.

Bidding opened at $1.9 million and quickly rose in $10,000 increments above the $1.96 million guide.

A flurry of bids in rises of $25,000, $50,000, $1000, $15,000 and $16,000 jumped around until the property sold for $156,000 above its $2,070,000 reserve. There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

The auction was held inside the property before a crowd of 40 people and was over within 10 minutes.

Selling agent Brad Papaellinas, of BresicWhitney Inner West, said it was well received, “considering the market has some complexities”.

“To have seven registered bidders there was a really nice surprise,” he said. “Really tightly held, I’d say, from my take – it’s probably one of the best buildings in Chippendale, if not the best.”

The vendors were John Brabant OAM and Jenny Kneebone, who lived out of Sydney. The interstate buyer had seen it for the first time on the day of the auction.

The unit last traded for $780,000 in 2005, records show.

The property was one of 1069 scheduled auctions in Sydney. By evening, Domain Group had recorded a preliminary auction clearance rate of 58 per cent from 621 reported results, while 194 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

In Hurlstone Park, a two-bedroom Federation cottage at 133 Duntroon Street sold for $2,265,000.

The single-level, redbrick home with white trim had a small study that could be used as a third bedroom and a backyard.

Eight registered to bid on the property, which had a guide of $1.95 million. Two were investors drawn to the proximity of the station and coming metro, while six were young couples, all owner-occupiers, some with children.

Bidding began at $1.9 million, with four of the eight registered parties making offers. The street was full, and more than 50 people were offered free coffee from a cart parked in the car port.

Bids climbed in $50,000 increments until hitting the $2 million reserve. Then $25,000 and $10,000 bids were placed for the rest of the way until the 430-square-metre title sold for $265,000 above reserve.

Selling agent Aris Dendrinos, of Richardson & Wrench Marrickville, said: “The house was pretty, so the first three rooms of the home were the original Federation home.” He said that the metro service to the city was a main attraction for buyers.

The vendor was an investor from South Australia. The cottage last traded for $1,442,000 in 2015, records show.

In Eastwood, a three-bedroom villa in a complex of three at 3/24 Alexandria Avenue sold for $150,000 above its $1.6 million reserve for $1.75 million.

Five bidders registered, and four of them took part. All were owner-occupiers from Epping and the Hills area.

The private unit with rear courtyard is in walking distance of Eastwood station and had a guide of $1.5 million to $1.6 million.

Bidding opened at $1.6 million, and $10,000 bids increased the pace back and forth all the way along, with a few $5000 bids towards the end.

More than 80 people watched on the driveway for almost an hour until the gavel finally fell at $1.75 million to a retired downsizer from the suburb.

Selling agent Tracy Yap, of the eponymous agency, said: “Behind the villa is a park … it’s nice. It’s a quiet, private and very nice villa.”

Yap added: “I still like to say the market is very tough. But if in a good location, good property, they are still selling very good.”

The deceased estate last traded for $282,500 in 1997, records show.

LJ Hooker’s head of research, Mathew Tiller, said Domain’s clearance rate of 58 per cent for Sydney was “a little bit softer than what we’ve seen at the beginning of the year”.

Tiller said anticipated interest rate rises and overseas conflict were “having a bit of an effect on buyer confidence”.

“But in saying that, there are still buyers out in the market at the moment [that] we’re still seeing turn up to open homes. And even though 58 per cent is a little bit softer than we’ve seen this year, that’s still buyers turning up and buying at auctions, still 58 per cent of those auctions being purchased,” he said.

“That demonstrates there is still demand in the market.”