Sydney auctions: Competition heats up as bidder numbers soar … – realestate.com.au

Aidan Devine
First published 15 Jul 2023, 2:42pm
Included in this crowd at an Arncliffe auction are 19 registered bidders, well above bidder competition typically seen last year. Picture: Julian Andrews
Competition at Sydney auctions has continued to intensify amid a listings shortage that’s turned the screws on home seekers.
A well-presented, but otherwise modest house in Arncliffe attracted a whopping 19 bidders at auction on Saturday, with many of the bidders having already missed out at previous auctions.
The battleground conditions pushed the price to $1.7m, well above the $1.35m the property was expected to sell for when first listed.
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The home was one of multiple auctions that attracted more than 10 bidders this week – normally a more subdued market because of the unpopularity of buying and selling in the winter months.
Auctioneer Perry Edmondson Clark said high competition was pushing up prices.
For perspective, a typical auction at this time last year, when the Reserve Bank was at the beginning of its rate rise cycle, would have attracted about two to five registered bidders.
The high bidder numbers at the Arncliffe auction encouraged bold bidding from the interested parties.
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The eventual buyer was reported to have adopted an aggressive strategy, countering small increases with much larger increments – known in the real estate industry as “knockout bids”.
Auctioneer Perry Edmondson Clark said it worked a treat. “You could tell right from the start that he wanted it. It was just strong, bold bidding,” he said. “Some of the other bidders were very firm too. They could see how many other bidder paddles there were and they knew that to put their best foot forward.”
Low listings have squeezed buyers into competing for the same properties, like at the Arncliffe auction.
Mr Edmondson Clark added that it was a “phenomenal result”. “Any time there is strong competition like that it is going to get a strong result for the vendor,” he said.
Property records showed the seller purchased the property for $912,000 in December 2014. That means they got a resale profit of $788,000, or about $130,000 for each full year they owned the home.
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Selling agent Nicholas Economos of Ray White-Rockdale said the vendors were “very pleased” with the result. The home was popular during the lead up to the auction, with 160 groups going through the inspections, including 55 at the first one, he said.
The home on Knight Street in Arncliffe.
“The location was great, and the home presented really well,” Mr Economos said. “Buyers could move just straight in. People like that convenience. There is not much presentable in Arncliffe right now. And with the cost of building materials going up, no one wants to go through a renovation.”
Mr Edmondson Clark said the few homeowners who were listing were being rewarded. “Sellers who aren’t waiting until spring are getting good results because there is still incredibly strong buyer activity,” he said.
In the inner west, a rundown Newtown terrace requiring substantial repairs has sold under the hammer for just shy of $1.52m – well above the initial $1.2m expectations.
3 Warrabri Place, West Pymble sold for $4.33m.
The two-bedroom, single-level terrace on Edgeware Rd attracted 10 bidders, with the hammer dropping at $200,000 over the seller’s reserve. Selling agent Frederico Fraga-Matos of BresicWhitney said the reserve was the seller’s “dream price”. He noted the location and entry level price pushed up competition.
And on the north shore, a West Pymble house built a decade ago has resold for $4.33m at auction after competition from six registered bidders pushed the final bid $380,000 above the seller’s reserve.
242 Edgeware Road, Newtow attracted 10 biddders.
The property on Warrabri Pl had last sold in 2009 for $712,500, records showed, with the original house knocked down and replaced with a six-bedroom, three-bathroom residence.
Ray White Upper North Shore agent Jessica Cao said: “we didn’t expect it to go this well.”
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