A family snapped up a renovated cottage under the hammer for $3.756 million in Sydney, as standout properties continue to attract fierce competition amid softer market conditions.
The four-bedroom home drew 93 groups through its campaign before four registered bidders battled it out at auction, achieving a record price for an existing house in the Sydney suburb of Zetland.
It comes as real estate agents say good quality homes are still commanding strong prices, while more challenging properties have been struggling to gain traction.
Auction activity has been softer across Australia since interest rates began to rise earlier this year, with the national preliminary clearance rate reaching 48.8% out of 1869 auctions held last week, according to PropTrack.
The property: The four-bedroom, three-bathroom house at 920 Elizabeth Street, Zetland sold at auction for $3.756 million.
The designer cottage offers a flexible multi-zone layout, a chef's kitchen with premium appliances and ample accommodation.
The renovated cottage at 920 Elizabeth Street, Zetland sold at auction for $3.756 million. Picture: realestate.com.au/sold
Suburb snapshot: Zetland is an inner southern suburb, located 4 kilometres south of Sydney’s CBD. It’s known for a bustling cafe scene, proximity to Green Square Station and the airport.
The median price for four-bedroom houses in Zetland was $3,091,944 in April, according to PropTrack. Zetland’s median house price increased 8.5% to $2.1 million during the past year.
The home offers a seamless transition to a private sunlit courtyard. Picture: realestate.com.au/sold
Selling agent James Perlowski of Belle Property Surry Hills oversaw the campaign and spoke to realestate.com.au about the result.
Tell me about the property?
It's very special. The owners rebuilt the house and it took two-and-a-half to three years to complete. They've done a spectacular renovation.
The living zones are finished with bespoke interiors and original working marble fireplaces. Picture: realestate.com.au/sold
What happened during the campaign?
We listed the property in early to mid April, and we had a huge amount of people through the property with 93 groups.
The kitchen comes with Smeg appliances, as well as integrated Liebherr fridge and freezer. Picture: realestate.com.au/sold
The house was pretty special, so that attracted a lot of local people.
What type of buyers did you see through the campaign?
We ended up having four buyers register for the auction. One was a local buyer, one was from Randwick, one was from the inner west, and one was from Surry Hills.
How did the auction go?
It was interesting, it had a very slow start. One of the buyers tried to open the bidding at $3 million, which was rejected because it was well below our price guide.
The first bid we accepted at the auction was $3.3 million and then the bidding went pretty slowly up to about $3.45-$3.5 million.
The homes offers four bedrooms, including a separate wing with its own bedroom, bathroom and living zone. Picture: realestate.com.au/sold
Two buyers went pretty hard from $3.5 million to where it sold at $3.756 million. The successful buyer was a family who was upsizing from their home in Waterloo.
Were you surprised by the result?
I thought it always had the legs to get there. I was unsure of the outcome, just with what's happening in the market at the moment.
But it highlights that when you've got competition and you've got good quality property, good prices are still being achieved.
There are three bathrooms in the home. Picture: realestate.com.au/sold
What’s happening in the market at the moment?
It's hit and miss. Good properties like this are still getting a lot of interest and groups through.
The open plan living and dining area spills out to a private sunlit courtyard. Picture: realestate.com.au/sold
But properties that have any issues or things not working in their favour, they're the ones that are struggling, in my opinion.
Predictions for this area?
I think it's going to be a relatively flat market. With the negative gearing and the capital gains tax changes from the budget, we'll see less property come to market.
Real estate agent James Perlowski says good quality homes are attracting solid buyer interest. Picture: realestate.com.au/sold
People that were considering selling, I don't think they will sell now just because they're grandfathered through with the changes, but it all just depends on what happens with the interest rates as well.
What's your top tip for sellers?
I would say you want to be marketing your property when there's less on the market.
The next three months would be an optimal time, particularly if people are considering selling and they're sitting on the fence.
It's probably a better time to do it now than later in the year, when everyone decides to do it in spring.
What advice do you have for buyers?
Just look at as many properties as you can because there are some good buying opportunities out there at the moment, and just negotiate as hard as possible.
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