Finance Property Buyers anything but cool before the winter slumber

Buyers anything but cool before the winter slumber

weekend property wrap June 1
This Mosman home sold for $1.01 million above reserve. Photo: LJ Hooker
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Auction clearance rates have firmed further in Sydney and Melbourne as many more buyers seek out the early-winter offerings, before the likely seasonal listings hibernation.

Auctioneers across the east coast capital cities reported a continued spike in auction bidder registrations that has hastened following the federal election outcome.

Two LJ Hooker auctions in Sydney attracted more than 20 registered buyers. And at an auction in Hurlstone Park in Sydney’s inner west, so many buyers registered that Richardson & Wrench ran out of bidding paddles for the four-bedroom period home at 8 Mill Street that went $200,000 past the reserve to sell for $1.655 million.

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There was no evidence of a property slump at the auction of 8 Mill Street, Hurlstone Park. Photo: Richardson & Wrench

A house, dubbed Brisbane’s worst house for sale, sold at a competitive weekend auction for $253,000, in the nation’s cheapest auction outcome.

Its pre-auction publicity attracted some 40 registered bidders for a house deemed so unliveable that none were allowed to inspect inside.

The Brisbane dump at 47 Birch Street, Marsden attracted an opening bid of $120,000, which rose quickly to $230,000, when it was declared on the market.

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The “Brisbane’s worst house” marketing blurb did the trick. Photo: Ray White

It sold to an owner-occupier looking for a project.

Its marketing photos, published by Ray White East Brisbane agent Ryan McHarg, showed the three-bedroom brick house on Brisbane’s south side with kicked-in walls in every room, graffiti inside and out, fire damage in the bedrooms, along with missing floorboards and brickwork.

A community organisation that provides lower-cost housing for Indigenous community members bought it in 1988 for $78,000.

The two largest auction markets, Melbourne and Sydney, both saw their preliminary clearance rates rise; coming in at the mid-60 per cent mark, however volumes were lower week on week in the first weekend of winter.

A 66.1 per cent preliminary clearance rate was recorded across Sydney this week, making it the best-performing capital city, according to preliminary CoreLogic results.

It comes off the back of last weekend’s 62.1 per cent final clearance rate, the highest Sydney has seen in more than a year.

The nation’s top weekend sale was $5.51 million in Mosman through LJ Hooker Avnu agent Michael Coombs.

The deceased estate sold for $1.01 million above reserve with the five-bedroom house at 4 Balmoral Avenue on the market for the first time in 67 years.

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The property had extraordinary sea views. Photo: LJ Hooker

There were eight registered bidders who competed for the 608-square-metre holding.

Domain reported there were 13 registered parties when a four-bedroom deceased estate at nearby 28 Lang Street, Mosman sold for $2.635 million to an upsizing family who intend to renovate the federation house. The reserve was $2.2 million.

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The home was being offered for the first time in four decades. Photo: O’Gorman & Partners

Only five got to bid, with the other prospective buyers including developers, first-home buyers and investors. It was offered for the first time in four decades.

There were slightly fewer homes taken to auction across Sydney this week with 674 auctions held, down from the week prior when 707 auctions took place.

Sydney auctioneer Tom Panos saw bidding from five parties interested in 40 Morton Avenue, Lewisham which sold under the hammer for $1.41 million, $130,000 above the $1.28 million reserve.

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The 1922 Californian bungalow had been extended and renovated. Photo: Raine & Horne

The opening bid was $1.275 million. The second bid was at its reserve.

However a three-level Republic 2 apartment in Darlinghurst listed with a $2 million to $2.2 million price guide was sold to its only registered bidder at $2.05 million.

The sub-penthouse at 301/50 Burton Street is being sold by retired, Bangkok-based Willis Towers Watson executive Andrew Heard.

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The apartment has 172 square metres of living space. Photo: Spencer & Servi

David Servi, of Spencer & Servi, had listed the two-bedroom, two- bathroom apartment which has 172 square metres of floor space, including the rooftop terrace with city skyline views.

The apartment, that sits in a BKH Architects-designed complex with an outdoor pool and gym, was being offered for the first time since completion.

It was a $1400-a-week rental in 2017.

The quarterly levies sit at $5000 a quarter.

Domain economist Trent Wiltshire said the weekend results were a sign the Sydney market could be close to a turning point.

“Clearance rates are now at their highest point in over a year, and other signs also point to renewed buyer interest – more people are attending open for inspections and auctions and more people are inquiring about home loans,” Mr Wiltshire told Domain.

Mr Wiltshire said although some headwinds remain, notably a sluggish economy and tighter lending conditions, most indicators point towards Sydney and Melbourne’s house price falls “ending this year”.

Brisbane’s top sale was an acreage 30 minutes from the CBD at 76 Molle Road, Ransome, a modern seven-bedroom, five-bathroom house.

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The property was set on one hectare. Photo: McGrath Real Estate

It secured $1.65 million through McGrath agent David White.

The one-hectare property last sold at $778,000 in 2006 with the house constructed in 2011.

There were 1654 homes taken to auction across the combined capital cities coming into the first week of winter, down from the 2055 homes auctioned last week, according to CoreLogic.

The lower volumes saw the preliminary auction clearance rate rise to 61.5 per cent after last week’s 57.7 per cent final clearance rate, which was the highest final weighted-average result in more than 12 months.

Over the same week one year ago, a higher 2281 homes were auctioned, 54.1 per cent of which sold.

Melbourne returned a 64 per cent preliminary auction clearance rate across 733 auctions, after last week’s final clearance rate fell just short of 60 per cent (59.6 per cent).

Melbourne’s top sale was $3 million in Camberwell when a five-bedroom 1900 home at 60 Brinsley Road was sold.

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The Camberwell home sold at the top end of its price range. Photo: Fletchers

Its pre-auction price guidance had been $2.75 million to $3 million. It last sold in 1999 at $476,000.

The remaining capital city auction markets all saw a lower volume of auctions take place week on week.

Perth returned the highest preliminary result of 55.6 per cent. There were however only 26 homes taken to auction across the city last week.

Jonathan Chancellor is editor at large at Property Observer

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