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A builder has picked up a dilapidated terrace in Glebe for $1.81 million, outbidding two dozen other buyers for the home.
The three-bedroom terrace at 14 Burton Street, which had no price guide and was being sold on behalf of NSW Trustee and Guardian, drew 25 registered buyers – mostly builders looking to flip the property.
It was one of 648 Sydney homes scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 57 per cent from 472 reported results, while 158 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
It’s Sydney’s lowest preliminary rate since last December, and the first time this year that the rate has dipped below 60 per cent – a benchmark that typically reflects a balanced market.
At the Glebe auction, a cheeky offer of $100,000 by one buyer was knocked back before the bidding started at $1.3 million.
The dilapidated home needed a complete renovation, but that did not stop 25 buyers from registering to bid on it. Credit: Rhett Wyman
Only six buyers were able to get a word in, as bidding climbed swiftly in varying increments, passing the $1.55 million reserve price.
It was a two-person race from the $1.7 million mark, and the pair placed counteroffers until the hammer fell at $1.81 million.
Successful buyer and builder Karl Dickey said he plans to flip the property that has white termites and needs to be completely gutted.
“I’m very confident of getting a margin on top of that. I feel like there is still a lot of money around, especially with the older generations,” Dickey said. “Worst-case scenario, if we don’t get what we want for it, we’ll just rent it out. It’s much needed in Sydney.”
The bathroom at the rear of the property. Credit: Rhett Wyman
Selling agent Hudson Musty of Urban Lane was surprised by the result.
“It was actually quite incredible to be honest,” Musty said. “It was definitely outstanding, there were way more bidders than we expected on the day.
“Everyone had their concerns, of course, but I think the opportunity goes above and beyond that in a sense.”
It comes just days after a liveable three-bedroom terrace next door sold for $2.05 million.
In The Ponds, a house at 85 Waterfall Boulevard that was built about a decade ago sold for $1,953,000.
Three families – two upsizers and first-timers – registered to bid on the four-bedroom property, which had a guide of $1.8 million.
Bidding started at $1,815,000 and went up in $5000 increments thanks to all three placing offers on the home. A final $500 bid sealed the deal for the first-home-buyer family, who were already renting in the area. The reserve was $1.9 million.
Cooley Auction’s Michael Garofolo said the last auction he called in the suburb reached $1.8 million.
“I’d say we’re right at the peak [in the suburb],” Garofolo said. “The market has risen this year. That would be right at the top. What happens next year? The decision around interest rates in February will set the tone.”
While the limited number of homes on the market was pushing prices up, buyers had no alternative but to compete as they face sky-high rents too, Garofolo said.
The home was last sold by Landcom for $370,000 in 2011, records show.
In Sylvania Waters, a waterfront property sold for $5.1 million to a local who wanted to upgrade to a home with a better view.
The five-bedroom house at 26 Macintyre Crescent had a price guide of $4.8 million to $5.2 million and drew two buyers who were looking to upgrade.
Bidding for the 777-square-metre block with a deep water frontage started at $4.8 million. It rose in a handful of bids to $5 million, at which point it stalled, before the highest bidders increased their own offer to $5.05 million to bring the price closer to the sellers’ expectations.
But the other registered bidder, who had a home on one of the canals of Sylvania Waters, topped that offer by another $50,000 bid, taking the price to $5.1 million at which the hammer fell. The deal was done after the sellers agreed to meet the market and dropped their reserve from $5.3 million.
DJW Property’s Dave Watkins said it was a fair price for all parties involved, and the successful buyer was upgrading from a nearby property to get a better view and position on the water.
“They live in the suburb but wanted to move to an open position. They’re in one of the canals. It’s a fair result for everyone for both buyer and seller,” Watkins said.
In Cherrybrook, a house within the coveted Cherrybrook Technology High School catchment area sold for $2,653,000.
The four-bedroom property at 2 Hallen Road had no advertised price guide and bidding started at $2.5 million.
Four of the five registered bidders made offers on the home before it sold to a young family from Parramatta who wanted to get into the area for the schools. The reserve was $2,645,000.
Ray White Upper North Shore’s Nathan Leuzzi said it was a strong result for a turn-key home.
He said the market would continue to perform next year if the number of homes for sale remained limited.
The home last sold for $910,000 in 2013, records show.
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