Zetland vendors cut reserve to sell $2.23 million terrace at auction

A father spent $2.23 million on a four-bedroom terrace in Zetland for his university-aged son to live in at auction on Saturday, after the vendors adjusted the reserve to reach a deal.

The immaculate two-storey home with a double garage at 59 Hansard Street had a guide of $2.1 million.

The property was one of 1029 scheduled to go to auction in Sydney last week. By Saturday evening, Domain recorded a preliminary auction clearance rate of 51 per cent from 653 reported results throughout the week, while 232 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

Three parties registered, and all three bid. Two were young couples looking to upsize and one was an investor.

Bidding opened at $2 million and rose in $25,000 and $10,000 increments. When the price reached $2.19 million the buyer bid against himself, raising his offer to $2.20 million and finally $2.23 million.

The reserve of $2,275,000 was adjusted down by $45,000 to meet the market where it sold under the hammer. There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

BresicWhitney’s David Smith-Cameron said the vendors “bought the property in 2021, [at the] peak of the market for $2,030,000, so it was an exact $200,000 difference.”

He added they “had higher initial expectations, but they were prepared to meet the market to get the property sold.”

Smith-Cameron said the buyer’s son was a university student who will live there. “I think it’s an investment that the son will live in,” he said.

As for the two underbidders, Smith-Cameron said a big part of the current market is upsizers. “They’re the only buyers at the moment who are happy to take the hit and sell … to basically be able to upsize and capitalise on the lower sale prices on the things they’re buying at higher price points.”

The vendors of the stylish property had relocated to London five years ago and not returned to Australia since.

In Hunters Hill, five builders registered on a weatherboard knockdown at 11 Princes Street listed for the first time in over 100 years.

Its guide of $3 million was updated to $3.21 million after a $3.2 million offer was declined nine days before it went to auction.

Initially, three parties were active. An attempt to open bidding at $2.5 million was rejected, then a $2.8 million offer kick-started the auction. A mix of large and small bids were placed ranging in $50,000 to $1000 increments.

Buyers were cautious once it reached $3 million with only $1000 bids met out until $3.3 million. At $3.4 million a fourth buyer registered and became the direct underbidder, competing until $3,652,000 before missing out by $1000.

The site, sold for land value, went for $3,653,000 under the hammer, which was $203,000 above its $3.45 million reserve.

Selling agent George Gialouris from Cobden Hayson Lane Cove said when the guide increased above $3 million the property lost the interest of families. For builders, he said the level block and north to rear aspect was ideal. He said luxury homes in Hunters Hill, “typically they can sell anywhere from sort of six to nine million.”

Auctioneer Edward Riley said, “What we saw today is that smart money is still ready to compete when there’s true scarcity and scope to add value.”

In Surry Hills, a four-bedroom terrace at 55 Albion Street sold at its reserve for $3.35 million.

Seven registered to bid on the luxe property guided at $3 million. Most were professional couples or young upsizing families.

Bidding opened at $2.7 million and two competed for the terrace. Offers went up in $100,000 rises to $3.1 million. Smaller bids then increased the price until it sold for $3.35 million.

Sotheby’s Zakir Abdallaoui said the suburb is attracting empty nesters who are returning to the area for the lifestyle they enjoyed as a couple before kids.

“The lifestyle now is pretty phenomenal. You’ve got some of the best restaurants in Australia, all throughout Surry Hills,” he said.

AMP’s chief economist Dr Shane Oliver said Domain’s clearance rate of 51 per cent for Sydney is “a bit better than last week” but not much.

“I think it’s going to remain fairly weak for the next six months, at least, I don’t see a sustainable recovery occurring really until the second half of next year.”

“The history of the clearance rate is that it swings from one extreme to the other, and I think this cycle would be no different,” Oliver said. “The only uncertainty is the tax hikes for investors – we haven’t seen anything like that for decades, so that puts a bit of uncertainty around things.”

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