A local downsizer has paid $12.12 million for a five-bedroom house in Bronte, Sydney, beating the reserve by $870,000 in a result that defied a weakening auction market.
The property in Macpherson Street had a north-facing aspect, beach views and updated interiors in a coastal palette. It also included a Caesarstone kitchen with a walk-in pantry, an alfresco terrace, a main garden and a separate courtyard.
Three parties registered for the auction and two took part, all from the local area. Bidding opened at $10 million, initially rising in $250,000 increments before moving in smaller steps of $100,000.
The price passed the $10.5 million guide and the $11.25 million reserve. Once bidding reached about $12 million, the increments narrowed before the hammer fell at $12.12 million.
The successful buyer, who is downsizing within Bronte, outbid a local family. The vendors are also planning to remain in the suburb after downsizing from the home they have owned for more than three decades. Records show it last sold for $1.12 million in 1994.
David Tyrrell, the Ray White (Phillips & Co) selling agent, said the result was unusual in a market that had softened rapidly over the previous three months.
“We are definitely running a lot more auctions,” he said. “The majority are selling at the guided price, maybe just above. For it to smash the reserve like this was an exceptional result.”
Mr Tyrrell said the agency was still selling most properties, despite what he described as an estimated 10 per cent market change. He added that there was limited stock in the price range and that the homes now coming to market were likely to be among the last auctioned this year.
Sydney auction market remains below balanced conditions
There were 845 Sydney properties scheduled for auction last week. By Saturday evening, Domain had recorded a preliminary clearance rate of 52 per cent from 501 reported results, while 154 auctions had been withdrawn.
The preliminary figure was up from 46 per cent the previous week, the lowest result recorded this year, but remained below the 60 per cent level generally associated with a market balanced between buyers and sellers. The rate is expected to be revised as further results are reported.
Elsewhere, a three-bedroom full-brick house in West Pymble sold for $2.3 million, meeting its reserve after attracting two registered bidders. The young family buyer may demolish the property and rebuild on its 904-square-metre block.
In Homebush, a renovated five-bedroom house on a 940-square-metre block sold for $4.151 million to a family upgrading from Eastwood. The property, which included a swimming pool and outdoor dining area, had been guided at $4.1 million, while its reserve was $4.2 million.
Tarun Sethi, the McGrath Strathfield selling agent, said the strongest demand was for homes offering an immediate solution to buyers, without the need for further work.
