‘State of inaction’: Inner west home sells for $2.59m as buyers go MIA

A three-bedroom brick bungalow at Rodd Point sold for $2.59 million, $90,000 more than the reserve, to a downsizing couple on Saturday.

Bidding for 21 First Avenue began slowly, with not even the promise of a bottle of champagne for the opening offer enough to entice either of the registered bidders to raise their paddles. Auctioneer Pete Matthews rejected an initial offer of $2 million for the property, which had a guide of $2.5 million, the same as the reserve.

Three minutes into the auction, bidding opened at $2.4 million as two groups carefully considered each of their bids. Increments began with a single $50,000 rise before dropping back to rises of $5000 and $10,000. After several minutes and a few eleventh hour bids, the gavel fell and the property sold.

The successful bidders were a family group with adult children bidding on behalf of their parents who are looking to downsize. The underbidders were a young couple.

It is the first time the property has been sold in 38 years. The vendor is moving to Queensland.

21 First Avenue, Rodd Point.DomainThe property is in sound condition, retaining many of its original features including stained-glass windows, period timberwork and a brick fireplace. Just 250 metres from the popular Bay Run, it has good access to public transport.

Matthews said the result was down to a “well-placed reserve”.

“It’s a clear example of the owner listening to [buyer] feedback and achieving more [money] through the competition [on the auction floor],” Matthews said.

Murphy Residential sales agent Max Wagschall said that six months ago he would have expected the property to sell for $2.7 million to $2.8 million. He had expected more bidders on the day.

The double brick home has retained many of its original features and sits on a level block.Domain“There were a lot more contracts issued – we should have had eight registrations. The market is in decline and there’s no hiding from it,” he said.

The pauses between bids were an indicator, Wagschall said, that buyers are “paralysed”.

“The market needs evidence that things are still OK, and there needs to be a level of justification before they act with live bids,” he said.

“The market is in a state of inaction.”

The property was one of 706 scheduled to go to auction in Sydney this week. By evening, Domain recorded a preliminary auction clearance rate of 53 per cent from 410 reported results throughout the week, while 133 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate

There was plenty of interest from neighbours but only two parties registered to bid for 21 First Avenue.James BrickwoodIn Kensington, a first home buyer couple paid $982,000 for a sunny two-bedroom apartment, $62,000 more than the reserve.

Twelve groups registered to bid for the property at 8/37 Kensington Road – nine more groups than initially expected – with five taking part. Bidding opening at $820,000 and rose in increments of $5000 and $10,000 before slipping to offers of $1000 until the hammer fell.

The property had a guide of $880,000 and a reserve of $920,000.

There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

The successful bidders have been renting locally. The underbidder was also a first home buyer who attended the auction with his parents. The vendors have held the property as an investment.

Ray White Eastern Beaches sales agent Ty Demirezen said higher rents and a softer market had incentivised more first home buyers to make the move into ownership.

“Rising rents and lowering [property] prices have given people sitting on the fence the push,” he said.

“Anything in the sub $1.5 million range, that is where the action is in the east. Those properties are doing really well, as long as they don’t have anything wrong with them, like being dark or strata issues.

“No one wants to pay high levies on top of mortgage repayments.”

The light-filled apartment in a mid-century red brick building is convenient to the University of NSW and local cafes, as well as having easy access to light rail.DomainIn West Pymble, a young family from the Hills district won the keys to a three-bedroom brick home with a wide 18.288m frontage, paying $2,038,000 – $163,000 above the reserve.

Six parties registered to bid for the home at 37 Bolwarra Avenue, with three active. Bidding opened at $1.7 million and bids increased by $50,000 and $25,000 before dropping back to $20,000, $10,000 and finally $8000 before the hammer fell.

The property had a guide of $1.8 million and a reserve of $1,875,000.

The Marshall Group sales agent Ahmad Basam said the underbidders were young couples and families attracted by the home’s convenience to schools, shops and transport. He said it was a good entry point for a house in the area but was not necessarily indicative of the overall state of the market.

The property at 37 Bolwarra Avenue was a beautifully maintained deceased estate.Domain“The market is segmented,” Basam said. “Anything under $2.5 million, there is good interest and new [vendors] coming into the market now are more aligned.”

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