An original, charming beach shack in Mona Vale escaped the wrecking ball when someone whose parents rented it while he was a child saw it listed for sale and bought it at auction for $4.5 million on Saturday.
The three-bedroom cottage at 78 Surfview Road , with bright blue kitchen and sunny verandah, was guided at $4.5 million and drew the interest of another local family and a developer from western Sydney. Both were interested in rebuilding on the coastal site.
The property was one of 845 scheduled to go to auction in Sydney last week. By Saturday evening, Domain recorded a preliminary auction clearance rate of 52 per cent from 501 reported results throughout the week, while 154 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Three parties registered for the weatherboard home with a level yard, stained-glass windows and dual street access. The house last traded for $1.55 million in 2007, records show.
The buyer, who had grown up there, attempted to open the auction at $4.2 million, but his offer was rejected. He increased his offer but was still rejected. Neither of the other two parties made a move. He then offered the guide price of $4.5 million, which officially opened the auction.
The agents negotiated for more before discussing with the vendors, a family of four. While one of the four had hopes of $5 million, their reserve was $4.85 million. They agreed to adjust their reserve, and it sold under the hammer for $4.5 million. There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
Selling agent Adrian Hybner from Stone Real Estate Pittwater said the buyers “loved the yesteryear charm and carefree living”.
Hybner said, “A-grade properties are still getting buyers’ attention.” He said he could “see smart money surface and secure properties at a heavily reduced rate based on where the top of the market was”.
The buyer, who declined to give his full name, said he had “huge memories” there. “The day we left, I was extremely upset as that was my dream home.”
In Bronte, an owner-occupier paid $25.2 million for an oceanfront home they will probably knock down and rebuild.
The deceased estate at 522-524 Bronte Road is set on a block of 1028 square metres and attracted four registered bidders, three of whom participated.
Bidding began at $18 million and rose at first in increments of $500,000, followed by $100,000.
The price guide was $25 million and the reserve had been set at the same level, but the vendors were willing to meet the market and the home was called on the market at $21.5 million. In the end, the original price hopes were surpassed.
Sydney Sotheby’s International Realty selling agent James Ball said the location was unique. “You are not going to get many opportunities like that again,” he said.
He said the market was getting better. “There is a bit of momentum and some good sales,” he said. “It is challenging. But there is a pool of buyers that definitely want to buy before the end of the year.”
In Earlwood, a five-bedroom house with a swimming pool at 27 Flinders Road sold above its $3.25 million reserve for $3.31 million.
The property was initially guided at $3 million, then changed to $3.2 million midway through the campaign based on the interest it received. Four upsizing families registered and all participated.
Bidding opened at $2.9 million and climbed in $25,000, $10,000, $5000 and $2500 rises until it sold under the hammer to a local family.
Selling agent Alexandra Stamatiou-Buda from McGrath Leichhardt said, “Buyers were hesitant but they bid.
“I think it would be very challenging for a buyer to remain optimistic in these markets, but they need to because these are great opportunities,” she said.
The vendor is downsizing nearby. The house last traded for $2.87 million in 2021, records show.
In Randwick, a five-bedroom house with hedged gardens and a swimming pool at 187 Rainbow Street sold for $60,000 above its $3.8 million reserve.
Four upsizing families registered and two competed for the residence with a guide of $3.5 million. The first bidder received a celebratory bottle of Verve, then increments of $50,000 and $10,000 went up until it sold under the hammer for $3.86 million.
Selling agent Chris Cantarella from The Agency said buyers were drawn to the turnkey “ready to go” nature of the property.
She added, “The buyers are back. The market is fine. I think the market is still great.”
The house last traded for $1.1 million in 2009, records show.
Chief economist at PRD Dr Diaswati Mardiasmo said Domain’s clearance rate of 52 per cent for Sydney was a “slight improvement” compared with last week’s 46 per cent.
She said, “I’m not surprised that it lifted up slightly.”
Mardiasmo said the possibility of the RBA putting up the cash rate again in November could lead to more activity.
“[It] could actually stimulate more buyers in the auctions wanting to secure their property at the current interest rate, at the current borrowing power as well.”
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