Sydney’s stellar price potential met a humble beachside cottage this weekend when it was sold at auction to a Melbourne buyer keen for its Bondi Beach panorama.
Three bidders competed for the 1920s home on the Ben Buckler headland at North Bondi. Bidding opened at $6.1 million for the three-bedroom home at 159 Hastings Parade and went up mostly in $200,000, $150,000, $100,000 and $50,000 jumps until the hammer fell at $7.55 million.
It sold to a family relocating from Melbourne, through Peter Starr of McGrath Group who had a price guide of $6.1 million to $6.6 million.
They plan to build their dream home on a 398 square metre block, with Bondi Beach views.
Reflecting almost $19,000 per square metre, Mr Starr said the sale set a record for land-value property in Bondi.
It last sold for $3.15 million in 2006 and at $148,000 in pre-boom 1985.
With auction volumes slightly lower, the national preliminary clearance rate improved marginally, according to CoreLogic.
There were 3276 auctions held across the capital cities, returning a 63.5 per cent success rate, up on last weekend’s final auction clearance rate of 61.1 per cent when it was the third-busiest week so far this year with 3438 offerings.
Over the same week last year, auction volumes were similar at 3207, although the clearance rate was considerably higher at 72.3 per cent, noted Kevin Brogan, CoreLogic auction analyst.
Across the two largest auction markets, Melbourne and Sydney, both saw an increase in the sales clearance.
Canberra recorded the highest clearance rate of 75.6 per cent of 101 auctions, compared to 128 last weekend. Its clearance rate was well up on the previous weekend’s 61.7 per cent.
Brisbane’s preliminary clearance rate was 44.9 per cent, down from 52.1 per cent last week. There were 191 Brisbane auctions, compared to 153 last weekend.
In Melbourne, Australia’s largest auction market, a preliminary auction clearance rate of 66 per cent was recorded across 1652 auctions this week.
The wet results included retired AFL star Andrew Walker’s house at 28 May Street, Preston which sold through Hocking Stuart at $1.74 million, well above the $1.3 million to $1.4 million price guidance.
Walker, who played 202 games for Carlton, bought the California bungalow in 2011 with wife Kylie.
They are moving back to Walker’s hometown of Echuca.
Last week, Melbourne’s final clearance rate was 65.5 per cent across 1736 auctions, making it the lowest clearance rate the city has seen since June 2016. Mr Brogan said the rate was likely to fall even lower as more results come in.
One year ago, 1416 homes were taken to auction across Melbourne and a clearance rate of 77.3 per cent was recorded.
A Caulfield North apartment was Melbourne’s cheapest at $280,000. The 12/113 Eskdale Road offering had been marketed with a $270,000 to $290,000 price guidance. Last traded in 2001 at $225,000, it was most recently a $300 a week rental.
Melbourne’s top sale was in Toorak where 7 Springfield Avenue fetched $4.6 million. The four-bedroom 2008-built Wendy Nettle-designed home last sold in May 2014 at $3.53 million.
Sales included a pre-auction deal on a Dendy Street, Brighton bathing box. It sold for a record price, likely more than $330,000, through Marshall White agent Barb Gregory. The previous record was $326,000.
Figures from the Real Estate Institute of Victoria suggest about 4300 homes will be sent under the hammer this month, which would top last year’s record 3877.
Across Sydney, 1126 auctions were held, down from 1215 over the previous week. The preliminary clearance rate of 62.4 per cent is up from 56.8 per cent last week, however still lower than this time last year, when a clearance rate of 75.2 per cent was recorded across 1182 auctions.
Adelaide saw a preliminary clearance rate of 64.6 per cent, with 99 reported results across a total of 141 scheduled auctions. In comparison, over the previous week Adelaide’s clearance rate was 63.4 per cent and 65.3 per cent one year ago.
Adelaide had the nation’s cheapest sale when $220,000 was paid in Aldinga Beach. It was a mortgagee sale of a three-bedroom house at 43 Butterworth Rd, Aldinga Beach. It last traded at $157,500 in 2008.
Perth’s clearance rate of 47.6 per cent across 50 auctions was up from the previous week, when 43 auctions were held and a clearance rate of 33.3 per cent was recorded.
Jonathan Chancellor is editor at large at Property Observer.