It was a freak event for anyone accustomed to the recent norm of Sydney auctions passing in with little interest from buyers.
An uninhabitable Leichhardt terrace requiring more than $800,000 in works to bring it up to the standard of surrounding homes has sold under the hammer for $1.855m.
The price for the three-bedroom home on Emily St, which included an upstairs rental, was $355,000 above the $1.5m reserve and about $450,000 above the price guide.
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The auction for the Leichhardt home attracted 18 bidders. Picture: Jane Dempster
The home was up for sale for the first time in decades.
The two-level home went to auction with a facade of rotting timbers and peeling paint. Inside, the kitchen ceiling was cracked and the walls were a mix of old decor and grime.
There was a crowd of about 60 people, including 18 registered bidders, at the auction.
For some context, close to half of the scheduled auctions in recent weeks were withdrawn from auction on account of too few bidders.
Those auctions that did go ahead typically had two bidders.
Selling agent Alexander George of Bradfield Badgerfox said the terrace was popular because it offered a “blank canvas” for renovators and builders to put their own design on the block.
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The interior was described as “uninhabitable” due to mould.
The agent estimated nearly $800,000 in works was required to unlock the full potential of the site.
“It’s a dump,” he said. “You can’t live in it as it is. There is mould upstairs. It’s been closed off for a long time.
“In this market, the properties that are doing well are either the really wealthy looking, best homes or they’re on the complete other end of the spectrum.
“This one had a lot of potential. It has an excellent corner position, a really good spot in Leichhardt.”
Mr George said about $800,000 was needed to unlock the full potential of the site, but a minimum $350,000 was needed to bring the home up to a liveable standard.
Auctioneer Mark Daley received an opening bid of $1.2m and six of the registered bidders made offers.
It is not known what the new buyer intends to do with the site.
The home sold under the hammer for $1,855,000.
“There has been a lot more positivity around the market lately,” Mr George said.
“It might just be a spring thing, but people have come more to terms with the weaker market. They’ve gotten over it, they’ve adjusted. A pause in interest rate hikes has probably helped.”
The Leichhardt home was among circa 570 properties scheduled to go to auction this week across Sydney, a nearly 20 per cent drop in the volume of auctions recorded at this time last year.
It’s likely many sellers have become cautious of going the auction route as auction clearance rates have been around the 50 per cent mark – the sign of a buyer’s market – since May.
13 Charles St in Ryde sold for $3.62m.
Auctioneer Clarence White said one of the difficulties in trying to sell under the hammer in the current market was that buyers were over-estimating just how much of a bargain they could get.
“A large chunk of the buyer (pool) is just taking a roll of the dice with really low ball offers that are well below where the market is at,” Mr White said. “Realistic buyers are rare.”
A Hamptons style house in Ryde sold for $3.62m – $360,000 over reserve – after attracting eight bidders at auction.
The home on Charles St was Ray White selling agent Dion Verzeletti’s personal home and he said there was considerable interest. “There’s a sweet spot in the market right now if you’re upgrading,” he said.
There were eight bidders registered for the auction of this villa on Ada St in North Ryde.
“We’re moving to an area where prices have dropped 15 per cent, but in Ryde they’ve dropped 8 per cent, so we’re coming out ahead.”
A villa in North Ryde sold for $1.84m after attracting considerable interest from buyers seeking a cheaper entry point into the area.
The auction was brought forward a week early on account of demand, with eight bidders registering for the Ada St home with selling agent Kim Toyer-Uttley of McGrath-Ryde.
The price was more than $200,000 over reserve. Ms Toyer-Uttley said bidding was “spirited”.
“Properties under $2m seem to be getting a lot more interest,” she said. “Anything even a little overpriced is struggling in this market.”
