Tamarama property that last traded for $29.2m resells for $20.25m

An oceanfront Tamarama property that last sold for $29.2 million in 2022 to hotelier Diane Maloney was resold at auction on Saturday for $20.25 million in a mortgagee-in-possession sale.

The home at 9 Kenneth Street faces the famous Bondi to Bronte walk, and there is no road between the residence and the ocean. It was offered with a price guide of $20 million.

The property was one of 1029 scheduled to go to auction in Sydney last week. By Saturday evening, Domain recorded a preliminary auction clearance rate of 51 per cent from 653 reported results throughout the week, while 232 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

This week’s result is slightly higher than last week’s preliminary result but remains below the key 60 per cent threshold considered to be a market balanced between buyers and sellers.

The Tamarama property was configured as a block of five apartments and a standalone beach shack and marketed as a blank canvas for the potential buyer to create their dream home.

The home’s owner is the corporate entity Winchester 2 Pty Ltd, whose director and shareholder is Maloney, but the organisation is listed as under external administration and/or controller appointed on ASIC records. The receiver manager is Costas Nicodemou of Newpoint Advisory. Two mortgages are listed on the title.

Maloney is a Point Piper local and is known for generous parties. This masthead previously reported that Maloney faced bill disputes, putting her at odds with contractors, her professional advisers and the receivers of her Plaza Hotel business who are collectively pursuing business debts said to total $100 million.

The Plaza Hotel is also for sale on behalf of Newpoint Advisory’s Nicodemou in his capacity as receiver and manager.

Three parties registered to bid for the Tamarama residence and all participated in the auction.

Proceedings began with a bid of $16 million and the price rose in increments of $1 million at first, followed by $500,000 and $250,000 bids.

The reserve price had been $24 million. Ray White (Phillips & Co) director Alexander Phillips said the vendor decided to adjust the reserve to sell, and a family from Strathfield bought the property under the hammer for $20.25 million.

There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

The underbidder was a developer from the Hills district and the other party was an Australian man based overseas.

“It is a rare, once-in-a-lifetime opportunity to live on the waterfront in Tamarama,” Phillips said. “There is not many beachside areas in the eastern suburbs that don’t have a road in front of you. This just had a walkway.”

Speaking broadly about the market, he said: “It definitely feels like it has levelled out. It is still extremely difficult.”

Auctioneer Damien Cooley of Cooley Auctions conducted proceedings. “What we saw yesterday was the registered bidders compete for the property and market value was determined in the current market conditions,” Cooley said.

Elsewhere, a young first home buying couple paid $915,000 for a Caringbah apartment.

The renovated two-bedroom home at 4/1-3 Jacaranda Road had a courtyard and a price guide of $850,000.

Four parties registered and all participated, starting with an opening bid of $800,000.

The price rose in increments of $5000 to $10,000 in a fast auction, passing the reserve price of $900,000.

The vendors are selling to upsize, and most interest in the home had been from first home buyers.

McGrath Cronulla selling agent Mitch Kenyon described the first home buyer market as “relatively robust” given the government assistance available.

“They are going to own the property for some time so it is not a bad time to be buying,” he said.

He sold all three of his auctions this weekend.

“There is still good buyers out there and properties are still selling,” he said.