While a number of Sydney homes are struggling to secure a sale under the hammer, a fire-ravaged three-bedroom in the city’s west has defied the broader market odds, selling for above expectations despite buyers unable to set foot inside.
The former Homes NSW housing commission property suffered an internal fire that has left the home with its windows boarded up.
Still, 19 Robertson Street, Merrylands managed to attract six registered bidders, two who were active in competing for the property.
It spotlights an appetite for properties with potential, and those that sit close to the $1m price range.
Sold by Auction Chief Auctioneer Ben Mitchell said the multiple registered bidders was bucking the broader trend at the moment.
“The average properties around Sydney at the moment, six to 12 months ago we would have five to 10 registrations and now we are getting ones and twos,” he said.
“A lot (of homes) have been passing in.”
9 Robertson Street, Merrylands is a former Homes NSW housing commission property that suffered an internal fire. Picture: Sarah Wilson
Auctioneer Ben Mitchell selling the fire damaged home. Picture: Sarah Wilson
Mr Mitchell said if vendors are prepared to listen to the market, there are sales to be secured, but added rising interest rates this year and the potential of more to come has seen some buyers hit the brakes.
“Certainly the buyer pool has shrunk and I think there is still a lot of uncertainty out there,” he said.
“Obviously the next interest rate rise will make it a bit of a challenge if it happens, which there is a lot of talk it will.”
With the home selling above expectations, Mr Mitchell said it was the opportunity for a blank canvas that attracted buyers.
“I think what is good about this property is that it’s a fresh start for someone, potentially knocking over what is here and building new,” he said.
An opening bid of $800,000 was followed with multiple bids of $100,000 and $50,000, eventually selling for $1.061m, above its $1.050m reserve.
The home soldent Soon Tee and Principal Joe Bechara
There were six registered bidders and two active for the home in Sydney’s west. Picture: Sarah Wilson
Mr Tee said buyer appeal was largely due to its land size, with the property sitting on a 682 sqm (approx.) block.
“In the tough market I think we did pretty good, we got a pretty good result with a property that was half burnt down,” he said.
The buyer purchased the home with plans to build a house and granny flat.
“I think the builders are still there, buying properties that they can make some money with,” Mr Tee said.
Mr Tee said the latest interest rate rise may have a bigger impact in coming months as current pre-approvals remain in place, though affordability was key. “Anything under $1.5m is still very active,” he said.
Realestate.com.au’s recent Market Snapshot shows Sydney auction clearance rates have been sitting around the low-to-mid 40s this year, falling following consecutive interest rate rises and budget tax changes in mid-May. Clearance rates sat at 37 per cent in the first week of October.
While various homes also passed in on Saturday, other homes saw successful sales including a five-bedroom, two-bathroom home in the Eastern suburbs that secured $3.86m under the hammer on Saturday morning.
The residence at 187 Rainbow Street, Randwick garnered four registered bidders and two who were active, selling above its $3.5m price guide and $3.8m reserve.
Lead agent and Property Partner Chris Cantarella of The Agency said it felt as though buyers are back.
“It was a good auction,” she said. “(The buyers) were a young couple, lives in the area.”
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160D Macpherson Street, Bronte
The auction at 160D Macpherson Street, Bronte
In the East, a five-bedroom home smashed its $11.25m reserve selling for $12.12m.
The five-bedroom home at 160D Macpherson Street, Bronte had three registered bidders and two active.
It soldRay White Phillips & Co
“It’s an auction that you see out of a strong market, which is obviously a bit weakish at the moment,” Mr Phillips said.
“There was a crowd of about 50.”
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