A 60-year-old weatherboard cottage on the NSW coast sold under the hammer for $2.9 million last weekend, marking a bright spot among the mixed auction results recorded around the country.
The three-bedroom home at 11 Beach Street, Bulli sat on a 645 square metre block, attracting buyers that wanted the property for its redevelopment potential rather than the home itself.
Seven bidders registered for the auction, but it eventually sold to a local buyer who wanted to build a duplex on the site.
It comes as the national preliminary clearance rate reached 48.7% out of 1538 auctions last week, according to PropTrack.
John O’Reilly, real estate agent and director at Laurence Morgan Woonona, said all seven registered bidders were locals, chasing one of the last remaining development opportunities in the prized Bulli East pocket.
“I can count on one hand how many of these properties are left in that area,” Mr O’Reilly said.
“This was always about the land, not the house.”
The three-bedroom home at 11 Beach Street, Bulli sold for $2.9 million. Picture: realestate.com.au/sold
The original cottage had never been renovated, but what buyers really wanted was the north-facing level block and its 15.24 metre frontage just a few homes back from the beachfront.
The site overlooked beaches, with a natural reserve behind the block. Mr O’Reilly said buyers were drawn to the lifestyle benefits without the exposure that comes with absolute beachfront homes.
“The coastal walking track runs right past a lot of front-row properties, so you’re on display like a fishbowl,” he said.
“This one still offers the same outlook and lifestyle, but with privacy.”
The house sat on a 645 square metre block near the beach. Picture: realestate.com.au/sold
The four-week auction campaign launched with a $2.9 million price guide, which Mr O’Reilly admitted was viewed by some as ambitious.
Early bidding at the auction was slow, with a $2.4 million offer rejected before the auctioneer opened proceedings with a $2.75 million vendor bid.
“Once it hit reserve, it was called on the market straight away,” Mr O’Reilly said.
“We achieved exactly what we set out to do.”
The cottage had never been renovated. Picture: realestate.com.au/sold
He said online activity remained strong, with buyers taking longer to commit before inspecting.
“Buyers are a little bit cautious, but there is confidence once buyers get off their screens and come to have a look,” he said.
"Once they do, then there’s transactions happening."
Real estate agent John O’Reilly says further interest rate hikes could tighten supply. Picture: Supplied
In the past fortnight alone, Mr O’Reilly has sold four properties throughout the surrounding areas, all at top-tier price points.
Looking ahead, he said further interest rate rises could tighten supply.
Interest rates have been hiked three times to 4.35% this year due to high inflation, and economists predict there may be further rate hikes to come this year.
Rising interest rates are a blow to many homeowners who face higher mortgage repayments and home buyers who won’t be able to borrow as much as they could previously.
“If sellers hold off waiting for better headlines, the properties that do come to market could attract even more attention,” he said.
“People still need to buy homes, and quality stock will always be fought over.”
New property listings were up 12.6% across regional NSW in April compared to a year earlier, however the total amount of property listings were down 8% year-on-year.
Bulli’s median house price increased 4.6% to $1.705 million during the year to April, according to PropTrack.
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