A five-bedroom family home in Strathfield sold for $6 million at auction on Saturday, after six swift $100,000 bids.
The double-bricked house at 9 Albyn Road, featured high ceilings and a large 1005 square metre block, located in Strathfield’s “Golden Mile”.
Five bidders registered for the property guided at $5.5 million, and a bid bang-on the guide was the first to open the auction.
Due to the high opening bid, only two competed and after just six bids the keys were secured by a local upsizer for $100,000 over the $5.9 million reserve.
There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
Selling agent Norman So from Belle Property Strathfield said, “the eventual purchaser … plan[s] to renovate the property. The underbidder wanted to knock the house down.”
“Normally it always does well when they’re located within the ‘Golden Mile’ of Strathfield … It’s very close to the Strathfield train station and the shops,” he said.
“Given the market conditions right now, with the clearance rate … [the vendors] were a bit nervous heading into this auction, but now they’re extremely happy.”
The vendor had originally purchased the property to build their dream home, but had instead rented it out for the duration of their ownership. The buyer plans to renovate.
The home last sold for $1.6 million in 2002, records show.
The property was one of 1308 scheduled auctions in Sydney. By evening, Domain Group recorded a preliminary auction clearance rate of 61 per cent from 817 reported results, while 225 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Balmain, a two-bedroom single level cottage at 47 Harris Street with no parking sold for $2,105,000.
It attracted six registered bidders at auction, with more than 50 onlookers in the busy street.
Five active bidders competed, mostly hopeful first-home buyer couples. Bidding opened at $1.6 million and rose in mostly $10,000 increments, soaring above its guide and reserve of $1.7 million.
Towards the end, competition came down to just two bidders, an investor and a family of three. The property ultimately sold to the inner west investor.
Selling agent Scott Robertson from Balmain Realty said, “[The buyer will] rent it out initially. But I think longer-term [they will] look to renovate and with the potential to go up a level and get off-street parking.”
Auctioneer Edward Riley said the result, “was driven by fierce, spirited bidding from start to finish, delivering an outstanding outcome despite ongoing uncertainty in the global economy, and fresh interest-rate speculation”.
The vendor had served the community as a medical professional from the home.
In Wattlegrove, a three-bedroom red brick house at 48 Daintree Drive with a double garage sold for $1,382,000, $82,000 above its $1.3 million reserve.
The proceeds of the deceased estate went to the pet charity RSPCA, selling agent Alen Toma from LJ Hooker Casula said.
Six bidders registered, and four were active. The battle came down to two investors and two first-home buyers.
Toms said bidding for the classic family home opened below its $1.3 million guide at $1.2 million, and went up in $20,000, $10,000, $5000 and $2000 rises, before selling under the hammer after 10 minutes to an investor.
He said buyers were drawn to the good condition of the property and added: “[The] land size was reasonable as well.”
Toma said the suburb of Wattlegrove is family oriented and located along the M5.
“A very popular, attractive area,” he said.
The home last traded for $76,500 in 1993, records show.
AMP’s chief economist Dr Shane Oliver said Domain’s clearance rate of 61 per cent for Sydney is “progressively declining.”
Oliver said, “We’re continuing the trend we’ve seen since the start of the year. The year started off quite strongly, and then it’s progressively weakened.”
He said the war with Iran was leading to increased uncertainty and a lack of confidence, so buyer demand is “basically fading in its environment”.
“High interest rates are not helping. There’s talk about more rate hikes to come, and there’s been a big increase in economic uncertainty associated with the war.”
Oliver said he suspects the clearance rate will be in the 50s within the next two weeks.
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