An auction for an ‘unusual’ city home has ended in mere minutes and gone $360,000 above the reserve price – showing at least some places appear to be immune to Australia’s property price plunge.
The home, situated at 70 Wells Street, Newtown in Sydney’s inner west, was sold to a family from Rozelle for $3.11million.
The property, which was listed with a $2.5million price guide, received an offer of $2.7 million from a buyer’s agent, acting on behalf of a local family, as soon as the bidding started.
A buyer swiftly made an offer of $2.71 million before the two bidders battled it out to push the price above the $3million mark.
It received so many bids, the auction priced out two serious buyers who didn’t even have a chance to make an offer.
A freestanding Newtown home sold for $3.11million at an auction $360,000 above the reserve price
The auction wrapped in three minutes and went by so quickly two serious buyers didn’t even have a chance to make an offer (stock image)
‘They might have had budgets that could compete, but the bidding went so quickly that they didn’t get a chance to put their cards up,’ Belle Property Annandale’s Blake Lowry told Domain.
The successful buyer of the home, a man named Ed, revealed that he was at the upper limit of what he was willing to offer when he made his final bid.
‘Everyone has a hard cap, we thought the property was worth $3.1 million, and had said we wouldn’t go over $3.15 million…if it went over then we were happy to let it go,’ he said.
Ed said he bought the 370-square-metre block as he and his partner were looking to upsize and be closer to their kids’ school – Newtown High School of Performing Arts.
The modish, two-storey property features five bedrooms, including an alternative home office for one room, two bathrooms and off-street parking for two vehicles.
There are two alfresco areas, spacious living areas designed to allow plenty of natural light to stream through, a gourmet kitchen with quality appliances, sheltered BBQ deck and garden.
The house is also close to shops and public transport.
The Wells Street home was last sold in 1996 for $295,000, according to property records.
The successful buyer of the home, Ed, said his family bought the home as they were looking to upsize and be closer to the Newtown High School of Performing Arts
The modish home features five bedrooms, including an alternative home office for one room, two bathrooms and off-street parking for two vehicles
There are two alfresco areas, spacious living areas designed to allow plenty of natural light to stream through, a gourmet kitchen with quality appliances, sheltered BBQ deck and garden
It was one of 696 properties set for auction in Sydney on Saturday.
Domain Group recorded a preliminary auction clearance rate of 73.5 per cent from 437 results on the day.
While the property still sold for a high price, Sydney is one of three major Australian cities currently reporting a significant decline in prices.
Capital city property prices in January fell by another 1.1 per cent for an annual decline of 8.7 per cent, making it the most dramatic slide in CoreLogic records going back to 1981.
The price plunges, however, would still do little to unwind the surges in value between 2020 and 2022.
This means housing affordability is still a lot worse than it was before the pandemic, leaving fewer options for first-home buyers as interest rate rises further limit what banks can lend.
Sydney is by far Australia’s worst-affected market with the median house price plunging by 15 per cent in the year to January to $1,205,618, marking the biggest annual fall since 1983.
Prices in Sydney peaked in January last year, when interest rates were still at a record-low of 0.1 per cent.