In St. Leonards, a first-time buyer who was buying a rent-to-own home in the area secured the keys to a two-bedroom apartment at 1 Sergeants Lane for $1.29 million.
Seventeen people have applied for the well-maintained unit, which has a guide price of $1.05 million, which is also the reserve bid. Many of these were local couples looking to buy a home for their parents who are downsizing, as well as investors and first-time buyers.
Five bids were received for the northeast-facing unit, which opened at $1.05 million. The price rose by $20,000 and $10,000 throughout most of the auction before slowing to smaller increments of $5,000 to $1,000.
Shabina Kamal of BresicWhitney said the atmosphere was electric as the 50-strong crowd crowded into the living room during the 15-minute auction.
“I haven’t seen so many people interested in a property in a long time, so this was exciting,” Kamal said. “The apartment itself had a beautiful view because it was so convenient. It ticked all the boxes and that’s why it attracted so many buyers,” she said, noting that the newly opened subway had boosted buyers’ confidence in the area.
According to records, the unit, which was an investment property, was last sold in 2000 for $555,000.
In Enmore, a 1930s Art Deco duplex at 1 Fotheringham Street was purchased by an investor for $2.75 million, with a reserve price of $2.2 million. The two single-deeded houses, with a guide price of between $2 million and $2.2 million, were offered as rental properties.
Eight buyers came forward and five bid on the classic home with stunning stonework and elegant cornices. Interest came primarily from families looking to accommodate multiple generations or investors.
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The auction started at $2 million and rose from $100,000 to $50,000 until the amount reached $2.5 million and then dropped to $10,000.
Ercan Ersan of Ray White said the units generate weekly rental income of $780 per unit.
“It was really a unique property and that’s why it went so well because it’s not often that you sell two units at once,” Ersan said.
“A lot of people who want to buy a house of this size in this area sometimes come in at $3 million to $3.5 million. So that’s great because … the parents might live downstairs, and the kids who aren’t on the market live upstairs,” he said.
According to records, the house was last sold in 2007 for $765,500.
AMP chief economist Dr Shane Oliver said the settlement rate of 67.8 percent was still low for August, but not bad overall.
“Offers are up slightly compared to last year. This is partly due to distressed sales due to high interest rates, and buyer demand is also somewhat dampened due to high interest rates,” he said.
Oliver said while the RBA was trying to curb inflation by cooling the market with high interest rates, the economy was moving towards lower interest rates.
“The changes we are seeing in interest rates – lower term deposit rates and lower fixed rates – we could argue are more consistent with the upcoming rate cuts. However, we believe those are still six months away.”
