A five-bedroom house in Manly sold for $21.5 million on Saturday, when it went under the hammer for the first time in more than 40 years.
A surgeon walked away with the keys to the original-condition home overlooking Manly beach, outbidding eight other registered buyers in a drawn-out auction that lasted for more than 40 minutes.
A large crowd gathered for the auction of 2 Reddall Street, which sits on a 400-square-metre block behind the Manly Surf Pavilion, and last traded for $300,000 in 1981.
Buyers' agent Peter Kelaher, of PK Property, was quick to start the bidding at $11 million. It then climbed in $1 million and $500,000 increments to $16.5 million, as four bidders made offers.
When the bidding stalled, lengthy negotiations on the auction floor ensued, and eventually an offer was made to match the vendor's revised reserve price of $19 million.
A fifth bidder then joined the competition, making an offer of $19.5 million, and the two parties traded $250,000 increases until the $21.5 million sale price. The suburb record sits at $23 million.
A vascular surgeon purchased the home, which is likely to be used as an investment property, said selling agent Lisa Novak, of Novak.
She said it was an amazing result that reflected the continued strength of the prestige property market.
“With these trophy homes there's no rhyme or reason … people aren't necessarily talking about interest rates, or a cooling market in their area, they're just saying this is a property that they have to have,” she said.
Novak noted that most buyers had been looking to do an extensive renovation of the three-storey home, which could cost upwards of $5 million.
Kelaher had expected the home to sell for between $18 million and $19 million, noting that buyers had to factor in a total renovation while being mindful of plans to redevelop the Manly Life Saving Club in front of the house.
The Manly property was among 552 Sydney homes scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 66 per cent from 353 reported results, while 71 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
In Petersham, 16 buyers registered to bid on a two-bedroom penthouse with a wraparound balcony, at 25/40 Maria Street.
Bidding on the 255-square-metre home started at $900,000 and quickly passed the $1.26 million reserve as five parties competed. The apartment sold for $1.61 million to downsizers from Chatswood, who noted post-auction they had paid more than they hoped to.
Joseph Ferreira of Adrian William said it was a massive result for the current market. It had been his most competitive auction for some time, as the unit appealed to both young professionals and downsizers.
“About 80 per cent of homes, they are tricky [to sell now], but if it's an A-grade property, something special or with a view, something like this, they're still performing well.”
The sellers, a young family, plan to upsize. Records show they purchased the home for $960,000 in 2018.
In Redfern, a first home buyer with help from the bank of mum and dad outbid two investors for a three-bedroom terrace at 167 Lawson Street.
The first home buyer from Clovelly kicked off the bidding at the $1.35 million price guide, and three of the six registered buyers made offers. The two investors had seen the terrace for the first time only that day.
The home was called on the market at $1.49 million, after the vendors adjusted their reserve down from $1.5 million, which encouraged further bidding. The home sold for $1,512,000 through Michael White, of BresicWhitney Glebe.
Records show the terrace last sold for $1,365,000 in 2017.
In Lilyfield, a four-bedroom house held by the one family for 60 years sold for $2.52 million.
The house at 32 Lamb Street had interest from nine registered bidders. There was an opening offer of $1.7 million, and five buyers competed for the keys. The home was called on the market at $2.1 million and went on to sell to a young local couple.
Kate Lorden of McGrath Balmain had been guiding the property at $2 million. Interested buyers had held their cards close to their chest before the auction, and had to factor in the higher costs now involved in renovating older homes.
**Source: Kate Burke- Sydney Morning Herald