Sydney’s auctions saw mixed fortunes on Saturday, amid buyer caution over recent rate rises and federal budget tax reforms keeping clearance rates at a six-year low.
Even so, select homes still drew competitive bidding and strong results.
An Upper North Shore auction on Saturday morning saw eager buyers compete for a three-bedroom house in Roseville.
With six registered bidders and four active, 5 Malvern Avenue sold for $3.745m, clearing its $3.5m reserve.
An opening bid of $3.3m set the competition off to a secure start, right at the home’s guiding price.
Ray White auctioneer Jason Keen (R) and Jessica Cao (L) pictured at the Auction for 5 Malvern Ave in Roseville. Picture: Daily Telegraph / Monique Harmer
It was followed by a series of bids including sums of $5,000, $10,000 and $15,000.
There were a couple of close calls of the hammer, but competition persisted.
With the final winning bid of $3.745m, to an owner occupier.
“The buyers are a young family and they have family living in the area so they know the area very well,” Lead agent Jessica Cao of Ray White Upper North Shore said.
“They’ve been looking for a long time.”
The vendors had been in the home for 22 years, with their children now grown, they are downsizing to The Central Coast.
“We’re really happy for the owners,” Ms Cao said.
“The market is very challenging at the moment, but when the property is presented so well and the price is aligned with the market expectations there are buyers willing to come and compete at auction.”
The auction at 5 Malvern Avenue. Picture Daily Telegraph / Monique Harmer
A crowd that sprawled across the backyard of the Roseville home. Picture: Daily Telegraph / Monique Harmer
Ms Cao said she believes auctions are the best way to operate in any market.
“Even this market, it’s very transparent and you can get the best results through competition,” she said.
Despite this, Ms Cao said she has seen less investor interest following the budget.
“We’ve seen a withdrawal of investors in the market and most buyers we deal with are homeowners,” she said.
Auctioneer Jason Keen of Ray White said the auction was a complete success.
“I spoke to the vendors before the auction and after the auction and they were absolutely beside themselves with excitement,” he said.
5 Malvern Avenue, Roseville
He pointed to the importance of the “mechanics behind the campaign”, with Ms Cao’s strong working relationship with the vendor and buyers.
“That’s the single most important part of the process,” he said.
Despite the result, Mr Keen said interest rates have played a role in a substantial shift in the market.
“We are seeing more one bidder auctions or some auctions with no registrations ,” he said.
“Whilst this was a brilliant result, a lot of the vendors are having to adjust their ideas on price to make a sale.”
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8 Oliver Street, Mascot
In Sydney’s South, a three-bedroom house in Mascot sold for $2.45m, clearing its $2.1m guiding price and $2.25m reserve.
With eight registered bidders and six active, the home at 8 Oliver Street was offered for the first time in over 60 years.
“People acknowledged it was a rare size block,” Agent Chris Skarlatos of The Agency said.
“It’s a good of a result you can get – you just can’t pick it at the moment.”
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34 Flora Street, Erskineville
An Inner West two-bedroom house sold under the hammer for $1.925m clearing its $1.7m reserve and $1.6m guiding price.
With seven registered and four active, 34 Flora Street, Erskineville sold via Bresic Whitney’s Nick Playfair and Harrison Jones.
“There was a strong opening bid of $1.75m from the eventual buyer,” Mr Playfair said.
Mr Playfair said the home was originally listed with a $1.5m guide but was adjusted, responding to feedback.
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David McMahon. Picture: John Fotiadis
NSW Head of Auctions David McMahon said the market is still searching for direction in the wake of the Federal Budget, despite another healthy week of auction activity across Sydney.
“While properties are still transacting, an encouraging sign for vendors, many campaigns are requiring additional time to secure a result, with a growing number of sales occurring seven to 14 days after auction day rather than under the hammer,” he said.
“Buyer behaviour continues to be the most heavily impacted metric.”
He added competition softened further this week, with an average of just 2.3 bidders per auction, while clearance rates also fell.
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