Sydney's auction market has recorded upbeat results to start the year: the top five sales ranged from $12 million to $14 million.
Among them were two apartment blocks, including a Watsons Bay duplex at 22 Victoria Street that sold for $14 million – $6 million above its $8 million reserve.
Cashed-up bidders are showing confidence as Sydney's property market picks up, especially at the upper end, bouncing after last year's steep price downturn.
Sydney's auction clearance rate edged up to 67.1 per cent for the month of March, the highest since October 2021. A clearance rate of 60 per cent suggests a balanced market between buyers and sellers, and anything higher is considered positive territory.
Despite signs of confidence, economists have warned more price falls are possible in the coming months, as 10 consecutive rate rises – and potentially more – could force some owners to sell.
But rate rises were little worry to buyers at Sydney's most expensive auctions of the year so far.
The Watsons Bay duplex comprised two three-bedroom units owned by a single owner.
Five bidders placed 209 bids over a 45-minute auction before it doubled the guided price of $7 million for $14 million. The prime position on a corner meant views could not be built out on either side; the double garage meant beach-side parking in the middle of summer wouldn't be an issue.
Selling agent Peter Anderson from Peter Anderson Real Estate believes the market is going up due to limited supply putting upward pressure on pricing.
“During the auction, the owner's face was lighting up like Luna Park,” he said. “At the end of it, the solicitor said to the owner, 'Now, if that wasn't the best 45 minutes of your life, I'd like to know what was!'”
Also in the eastern suburbs, celebrity radio host Jackie “O” Henderson's purchase of a three-storey oceanfront home overlooking Clovelly Beach made real estate headlines in March.
The ten-minute auction was hotly contested between three bidders and sold well above the $10 million guide and $12 million reserve for a final $13,250,000.
Selling agent Alex Phillips of PPD said the unique position with direct water views was a major drawcard.
Phillips confirmed prestige real estate is tracking well. “That $10-$15 million bracket is super strong at the moment. It is the strongest marketplace,” he said.
In Tamarama, an entire block of beachside apartments sold for $13 million at 19 Dellview Street. Three owners joined forces to sell up, creating a rare once-in-a-generation opportunity for the new buyer.
Within five minutes, the prime address had sold for $2.5 million above the $10.5 million guide.
Selling agent Alex Phillips of PPD said the position, proximity to the water and the development opportunity made this listing stand out.
“There's no one in front of you, you could build one big house, two houses, leave it as it is,” he said.
In Bellevue Hill, the interest for 34 Rosslyn Street was so strong that the four-week campaign was cut down to two weeks only.
Four parties competitively bid above expectations, with the final price of $12,460,000 well above the $11.5 million guide.
The standout attractions of this five-bedroom, four-bathroom Georgian style-manor were a north-facing garden and proximity to schools.
Selling agent Alex Phillips of PPD said there is an oversupply of buyers in the market this autumn.
“A lot of vendors aren't selling, they're worried about where the market is, but it's actually a lot stronger than what [they think] it is. So I think it's stopping people from selling because they think it's a bad time. But at the moment, it's definitely not,” he said.
In the inner west, a five-bedroom, three-bathroom waterfront home at 25 Hezlet Street in Chiswick sold for $12 million.
Selling agent Matthew Ward of Ward Partners said it was a fabulous home in a fabulous location.
“Sadly we haven't seen too many more of them this year,” he said.
“The waterfront market has been particularly tightly held over the last few years. The challenge for me is that you've got a lot of people that want to buy these nice waterfront homes, but there's just not the supply.”
Ward said he suspects there is a backlog of buyers keen to enter the prestige market if given the opportunity.
“I wish I had more houses ... but as I say the premium market has been particularly tightly held this first quarter.”
*** Source: Carmen Forward - The Sydney Morning Herald ***