Updated ,first published
A couple who bought their first home made one bid to become the new owners of a two-bedroom apartment in Lane Cove, paying $785,000 on Saturday.
Despite early expectations of two or three bidders, only one party showed up that day to bid on the well-kept mid-century home there. 14/38-40 Centennial Avenuewhich had guidance of $790,000 and reserves of $785,000.
There is no legal requirement for the seller’s reserve to match the guide price of their property.
The property was one of 451 scheduled to go up for auction in Sydney on Saturday.
When Lane Cove’s auction was scheduled to begin, Raine & Horne auctioneer Pete Matthews instead found himself sitting in the apartment’s lounge, gesticulating, as negotiations with potential buyers continued behind closed doors.
After more than 15 minutes, all parties emerged and Matthews opened the auction. The young couple made one offer and the property was sold under the hammer.
Built in 1965, the well-maintained upper floor backs onto a leafy park. The couple was drawn to local amenities and its proximity to the city and their families. They had been looking for a property for the past two months.
“We loved the natural light and looking out over the garden,” said one of the new owners, who did not give their name.
The seller, who had lived in the apartment for 40 years, has moved into a care for the elderly.
Matthews said in 30 years in the industry, he has never seen a situation like this.
“This is the worst I’ve seen, and that’s considering the GFC,” he said. “I think we’re at the price from four years ago.”
Raine & Horne sales agent Alex Banning was not entirely optimistic about the market.
“Good properties still move if they are well presented and priced right from the start.”
However, he said it is important for sellers and buyers to wake up quickly.
“There’s been a period of correction – the market has gone down fast and people are trying to catch up. You’d have to live under a rock not to know what’s going on.”
“We still see some areas where there is a lot of competition, but they are few and far between.”
In Waverton, a three-bedroom house went to auction on Saturday after it failed to attract a single bid.
Sales agent for 3/14 Woolcott StreetSean St Clair, from Holmes St. Clair, had expectations before the day of the auction that three parties wanted to buy the house on the ground floor – which had a guide of $ 2.2 million and a reserve of $ 2.4 million – but none were registered when the time came.
“There were about 12 people there – I think about half of them were neighbors,” St Clair said. “But there were three groups after the auction that I couldn’t get rid of, which was very strange. They all thought it would sell.”
The property will now be offered for sale for $2.4 million while negotiations with potential buyers continue.
“There was a couple downsizing who live in – they want something on one level,” he said. “There were also two young couples in their 30s who were organizing the money.”
The vendors are a couple who need more space for their growing family.
St. Clair said the results show continued reluctance among buyers.
“Because there are a lot of results that are a little bit lower than what people might expect, buyers are getting the impression that this is not the bottom of the market.
“Of course there are buyers in the market, but they are very worried about buying and the market continues to decline.
“It’s unpredictable.”
In Zetland, two first home buyers competed for the keys to a split-level apartment, which sold for $1,150,000, equal to the reserve.
Two bedroom, two bathroom apartment G55/9 Letitia Street he had a $1 million lead.
Four parties registered to bid, and two are active. Bidding opened at $900,000 and bids went up in increments of $50,000, $20,000 and $10,000.
The successful bidder was a single woman, while the lowest bidders were a young couple. The seller is hoping to strengthen the market situation add to the low price.
Ray White Erskineville sales agent, Ercan Ersan, said even Expectations to rise further this year it wasn’t enough to deter buyers.
“People are preparing for the rate hike,” he said. “If they need to buy, rising prices won’t stop them. Life still goes on.”
Robyn Willis is a property reporter and former lifestyle editor for The Sydney Morning Herald and The Age.
