Updated ,first published
A two-storey, seven-bedroom house in the heritage suburb of Haberfield sold for $5.2 million on Saturday, $300,000 below the reserve.
The home at 262 Hawthorne Parade had a reserve of $5.5 million and was marketed with a guide of $5 million.
There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
Owned by a prominent family active in local business, records show they paid $200,000 for the property in 1987. They built the house, which includes a sweeping staircase and chandelier in the entryway, in 1991.
About 50 people gathered in the garden on the 1239-square-metre site as auctioneer Jesse Davidson opened bidding at $4.8 million. After an initial bid of $100,000, two bids of $50,000 followed before the auction progressed in increments of $10,000.
Bidding stalled at $5.16 million while sales agent Alfio Musumeci took instructions from the vendor. When bidding reached $5.2 million, the property was declared on the market and it sold. There were five registered bidders, with four taking part.
The successful bidders were a family from further west whose children were in private schools in the inner west. The underbidders were a local family looking to trade up.
Ray White Elevate sales agent Kristian Morris said the result was “further evidence” that the market had cooled.
“I would have thought we could have done better [with the price], but bidding was hesitant,” he said. “Even the underbidder cited interest rates when I was encouraging him [to bid].”
The property was one of 712 scheduled to go to auction in Sydney this week. By evening, Domain Group recorded a preliminary auction clearance rate of 52 per cent from 428 reported results throughout the week, while 158 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Elizabeth Bay, a two-bedroom mid-century apartment sold for $1.34 million, with money from the sale to be distributed among local charities.
About 50 people gathered in the 1960s apartment at 414/6A Birtley Place to witness the auction, with bidding opening at $1.2 million. There were five registered bidders, two of them active.
The property had a guide of $1.1 million and a reserve of $1.2 million. Just five bids secured the sale after offers opened at $1.2 million and rose in increments of $25,000.
The successful bidder was a woman from Glebe who plans to move in. The underbidders were a couple with a baby who knew people in the building. The property was a deceased estate.
The property is in Baroda Hall, which is under company title. It comes with a caveat that properties cannot be rented out and no pets are allowed.
BresicWhitney sales agent Nuri Shik said the restrictions knocked out investors and “flippers”, leaving the door open for homebuyers.
In Crows Nest, a three-bedroom townhouse went under the hammer for $2.15 million on Saturday, fetching $205,000 less than its 2023 sales price.
One bidder registered for the auction of 1/85-87 Burlington Street, which had a guide of $2.1 million and a reserve of $2.15 million.
Before the auction, Belle Property Mosman sales agent David Benjafield said he was expecting three bidders, but only one showed up.
“For one of the [absent] bidders, it was financing issues,” he said.
Benjafield said the result for the property, which records show sold for $2,355,000 in 2023, was indicative of the current market.
“I haven’t seen a correction this fast – that’s the reality,” Benjafield said.
He said this created opportunity for buyers, but concerns around capital gains tax, negative gearing and banks reviewing loan preapprovals were taking their toll.
“Buyers are very cautious now,” he said. “The reporting that [the market] is down 0.9 per cent is lagging. It has pushed back 10 per cent in our area.”
The successful bidder was a single woman downsizing from nearby Mosman.
In Marrickville, the new owners of a four-bedroom terrace are planning to renovate after paying $1.65 million at auction.
The unrenovated home at 270 Victoria Road attracted four registered bidders, with three taking part. It had a guide (and reserve) of $1.5 million.
Bidding opened at $1.4 million and rises of $50,000 followed before increments slowed to $10,000 or $5000.
The successful bidders were a couple upsizing from an apartment in Penshurst, which they had renovated themselves before selling. They plan to get back on the tools and are just weighing up whether to move in or start building immediately.
The underbidders were a young family who also had plans to renovate.
Aales agent Ramon Raneal, of The Agency Inner West, said buyers were “doing the maths” on unrenovated properties, factoring in the cost of labour and materials, but there was still a market for fixer-uppers.
Robyn Willis is a property reporter and the former lifestyle editor for The Sydney Morning Herald and The Age.
