Investor beats young couple for $1.4m fixer-upper in Sydney’s most advantaged suburb

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Key points

• Ten parties registered to bid on an Erskineville fixer-upper.
• An unliveable Church Point shack fetched $1,576,000.
• A luxurious CBD apartment traded for $5.5 million. 

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A dilapidated three-bedder in Sydney’s most advantaged postcode sold for $1,416,000 at auction on Saturday.

The narrow house at 43 Prospect Street had been in the same family for three generations, with little to no building works completed during the past 105 years, and included an eggshell blue bedroom, courtyard with plenty of potential and kitchen ready for a revamp.

While ABS data recently revealed the suburb of Erskineville as the most advantaged pocket in Australia, the history of the street is one of working-class Sydney. The property was passed down from the grandparents to their son, a professional boxer, then to his son. The elderly vendor was sentimental on the day, recalling climbing the roof in his youth.

Ten registered to bid, and four actively bid in front of a buzzing crowd of 80. The house, straight from 1920s Sydney, was sold for $1,416,000, or $116,000 above the reserve price of $1.3 million.

Bidding opened at $1.1 million, quickly climbed above the $1.2 million guide, and an investor beat out a young couple with a single bid of $5000 right at the end.

It was one of 554 homes scheduled to go under the hammer in Sydney on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 78 per cent from 359 reported results, while 51 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

Selling agent Shaun Stoker from Ray White Erskineville said the suburb currently has only one property for sale.

“[There is] a bit of an artificial bubble at the moment. This time last year, there were 15 to 20 [properties for sale in Erskineville].

Elsewhere, an unlivable shack that must be demolished due to termites and rot was purchased for its prime location at 69 McCarrs Creek Road in Church Point.

On more than 1000 square metres of land – including an 18-metre frontage with water views across Ku-ring-gai National Park – it sold for $1,576,000, above the reserve price of $1.2 million.

Five registered to bid and selling agent Juliet Wills from LJ Hooker Mona Vale said the standout feature was its location, opposite a waterfront reserve.

“We’ve seen a huge pick-up this year from last year. Things were really languishing at one point. But it is one of the most beautiful parts of Sydney in just the most spectacular natural environment,” she said.

AMP Capital chief economist Dr Shane Oliver said Saturday’s 78 per cent clearance rate indicates the property market is strong. Oliver said the biggest drivers of the property market are the lack of supply, with immigrants returning, and fear of missing out.

“There is a degree of uncertainty hanging over it because the RBA actually mentioned rising house prices as a factor in the decision to raise interest rates this week. So if it continues to strengthen, then all things being equal, it increases the chance of further rate hikes,” he said.

Dr Oliver cautioned people not to overextend themselves.

“Make sure you’re sensible in terms of the amount of debt you take on. Be aware that we are still in relatively uncertain economic times.”

In the city, a luxurious two-level three-bedroom apartment at 5605/393 Pitt Street sold for $5.5 million after being on the market for 12 months. The penthouse apartment requires a whopping $15,000 per quarter in strata levies.

Three registered to bid, and two made offers. The vendor was hoping for $7 million initially, but after it didn’t sell for 12 months, the agency relaunched it with a four-week auction campaign and new expectations. While the agent declined to share the reserve, he said the vendor was “very happy” with the result.

Bidding opened at $4.8 million, and a couple and a local bidder who went as far as $5.3 million participated. At $5.35 million, the property was passed in. After 15 minutes of negotiations, it was sold for $5.5 million to an empty-nester couple who plan to use the apartment as their city base.

Selling agent Courtney Wong from Black Diamondz Property Concierge said it was the best apartment in the Hordern Towers building.

“It’s a unique property. It’s the best penthouse. Because there are six penthouses, this is the best one and the biggest one,” she said.

“The market’s really good. Better than a lot of people think.”

The apartment last traded for $3.08 million in 2014, records show.

In North Manly, a dated family home at 58 William Street was purchased for $2.3 million, with six registered bidders interested in the land only. Guided at $2 million initially, the guide was adjusted to $2.2 million during the two-week campaign.

Selling agent Sam Mendicino from Doyle Spillane said there 450 inquiries were made for the property and three parties made offers.

“This property is pretty much a knockdown. This house was going to be about someone who wanted to knock it down and build,” he said.

In Smithfield, a three-bedroom home with potential to build a granny flat sold for $1,115,500 to a first-home-buyer couple.

Nineteen registered to bid, and nine actively bid on the house at 94 Chifley Street guided between $800,000 to $850,000. It was sold by Mario Piredda from Ray White Wetherill Park.

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