Homeowners urged to ‘sell now’ as vendors net prices well above reserves at Sydney auctions
Homeowners are being urged to sell now or regret it later as Sydney’s housing market continues an unexpected purple patch that has been netting vendors solid prices.
There were close to 300 auctions held across the city this weekend, an unusually low number for this time of the year, and the lack of seller competition helped many vendors get well above their reserves.
A six-bedroom house in Randwick sold at auction Saturday for a whopping $3.265 million after attracting five bidders – all who submitted offers above the $3 million opening bid. It was one of three sales above $3 million capped off in the first half of the day.
The Randwick house on Frederick St sold for $170,000 above the vendor’s reserve.
Selling agent Nick Wise of McGrath-Coogee said more than 70 groups of keen buyers had inspected the property, which was unusually large for the area.
Comparable properties were selling for the same price in February – before the COVID-19 crisis began, Mr Wise said.
“People keep saying the market is going to crash but it never does,” he said.
The other $3 million sales included a house in Drummoyne sold for $3.5 million and a Surry Hills terrace sold under the hammer for $3.05 million.
CoreLogic data showed the Sydney auction clearance rate was 65 per cent last week – level with long-term market trend. Weekly clearance rates have been consistently above 60 per cent since on-site auctions were allowed to resume four weeks ago.
“The market is very strong at the moment,” Mr Wise said. “Most buyers are looking to the long-term. They know properties in the area will hold their value.”
The Randwick buyers were a family upgrading from a property in nearby Bondi Junction and most of the other registered bidders were in a similar position, Mr Wise said.
In the inner west, a three-bedroom house on a corner block in Erskineville sold for $1.68 million after attracting the interest of 10 registered bidders.
The price was $130,000 over the reserve and a relief for the New York-based vendor who was alleged to be “super motivated” to sell.
Eight of the registered bidders submitted offers, with auctioneer James Keenan receiving an opening bid of $1.4 million.
The bidding was fast-paced, rising in initial increments of $50,000, and some bidders put in offers simultaneously.
The Lambert St property had last sold for $1.45 million in 2015 but traded for a mere $40,000 in 1989, sales records showed.
A crowd of about 40 people watched the auction, including neighbours spread across the opposite side of the street.
Ray White-Erskineville selling agent Shaun Stoker said the property attracted a broad mix of buyer types, including upgrading families, first homebuyers and downsizers.
There was no interest from investors, which was a consistent pattern in sales over recent weeks, Mr Stoker said. The buyers were a family upgrading from a unit in Camperdown.
“A lot of people thought there would be a market crash because of COVID-19 but it hasn’t happened,” Mr Stoker said.
“The market is actually better than it was last year, just before the federal election. Back then you’d be lucky to have more than one bidder.”
Home sellers were getting good results because there was little competition from other vendors, forcing home seekers to vie for the same properties, Mr Stoker added.
“It takes a brave person to sell at the moment but those who have gone ahead are being rewarded,” he said.
Mr Keenan said bidding at the Erskineville auction and other recent sales was “confident” and showed there were still buyers in the market ready to pounce on “good properties”.
“There are lots of people with plenty of money to spend and they’re trying to buy while they still have approval for loans but there isn’t much available, so the properties are selling well,” Mr Keenan said.
In the eastern suburbs, a three-bedroom apartment roughly 20 minutes’ walk from Bondi Beach sold for $1.375 million – $150,000 over reserve – after attracting 13 registered bidders.
The property on Andrews Ave had last sold in 1987 for $136,000 and was in a block requiring homeowners to pay a $15,000 levy before moving in.
Six of the registered bidders put in offers and auctioneer James Hayashi got an opening bid of $1.1 million.
The buyers were a couple planning a move from Melbourne and got a buyer’s agent to bid on their behalf.
“Most of the bidders were professional couples who lived in the area and wanted to upsize out of a two-bedroom unit,” Mr Lennan said.
The apartment was well-presented but had scope for a renovation, which helped draw buyers. “Comparable properties were selling for about $1.25 million before the (COVID-19 pandemic),” Mr Lennan said.
On the upper north shore, a recently renovated four-bedroom house on Waratah Rd in Turramurra sold for $1.64 million – $515,000 higher than the 2019 price.
“The owners paid $1.125 million last April and then did a cosmetic renovation,” said selling David Walker of Ray White-Turramurra.
“When everyone is running around saying prices are down, we keep achieving great results.”
The price guide for the home was $1.5 million-$1.65 million and 100 groups inspected the home.
“There’s been a lot more activity this week, so many people are out and looking … I think people are worried prices are going to shoot up, not down, as restrictions ease … the time to sell is now,” Mr Walker said.
Courtesy of www.realestate.com.au