First home buyers pay $1.8m for Glebe terrace that ‘might have got $2m’

A first home buyer couple paid $1,804,000 for a renovated, two-storey Glebe terrace at auction on Saturday, in a week when just over half the scheduled auctions sold.

The two-bedroom home at 12 Gottenham Street dates to about 1890 but features stylish updates and an entertainers’ courtyard with a copper outdoor shower.

The property was one of 715 scheduled auctions in Sydney last week. By Saturday evening, Domain Group had recorded a preliminary auction clearance rate of 51 per cent from 424 reported results during the week, while 163 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The Glebe home was listed with a price guide of $1.7 million and drew five registered bidders.

Bidding began at $1.6 million, and three parties competed, narrowing to a two-horse race later in the auction.

Ray White Erskineville/Alexandria/Glebe/Surry Hills selling agent Matthew Carvalho said that towards the end of proceedings the bidding was “pretty slowgoing” as contestants appeared to approach ceilings of about $1.8 million. The reserve was $1.8 million.

He said that interest had come from young couples and first home buyers, and the winners were renting in the Centennial Park area. He did not have investors interested in the property.

The market, broadly, was mixed at present, Carvalho said.

“Under $2.5 million, the market is still reasonably good. That $2.5 million to $3.5 million, people are just being a little more selective and fussy.” He also said that buyers were mindful of the budget, interest rates and global events.

“This [home in Glebe] might have got closer to $2 million 12 months ago,” he said.

Elsewhere, a dual income property, generating $1100 a week in rent, sold below reserve in Chester Hill.

The “investor’s dream” at 2 McClelland Street – with a four-bedroom house and two-bedroom granny flat – had a reserve of $1.32 million and sold under the hammer for $137,500 less than its reserve, for $1,182,500.

Two buyers registered to bid and after one eventually opened the auction at $1 million, the second buyer increased the price by $50,000. Then the opening bidder, who planned to flip it, promptly got in his car and left.

An investor from South Granville continued to negotiate, and after a vendor bid at $1,150,000, bid until the vendor agreed to sell at $1,182,500.

Selling agent Jordon Le Breux of Ray White Bankstown said the auction “was a bit of a shock. It was like pulling teeth to try and get an opening bid.”

As for the $1.5 million guide, Le Breux said, “that estimated selling price was done about two months ago, before I suppose all these things were happening in the market. This kind of property, respectfully, six months ago would have got $1.4 [million] and $1.5 [million], no doubt about it.”

“A property with … a granny flat, in these kinds of areas, close to the station. Obviously, it’s an investor’s dream, but we’re not really an investor’s market,” he said, adding that the proposed federal tax changes had reduced investors’ borrowing capacity.

The address last traded for $400,000 in 2012, records show.

In Tempe, a two-bedroom unit guided at $750,000 drew 10 registered bidders, most of them first home buyers. Four took part in the auction for the top floor apartment near a railway station at 5/81-83 Samuel Street.

Bidding began at $750,000 and jumped around in increments of $10,000, $15,000 and $5000 before slowing towards the end and settling down to $1000 rises until it sold for $117,000 above its $780,000 reserve for $897,000.

There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

Selling agent Louise Mitchell of BresicWhitney Inner West said, “It was a good little starter apartment and had parking, which is quite important with properties in the inner west.”

“Tempe itself doesn’t have many units, it’s predominantly houses … so the price point is very good compared to something like Marrickville.”

Mitchell also said that she would not have expected investors to take interest in such a property, as they were more likely to buy a house in the suburb because it offered a stronger rental return.

The vendor, a Northern Territory-based investor, was cashing out. The purchasers are a first home buyer couple from Tasmania.

The unit last traded for $265,000 in 2007, records show.

In Beecroft, a stunning Federation-era residence with a white picket fence, manicured gardens and swimming pool sold for $3,176,000.

The six-bedroom family home at 63 Hannah Street drew three registered bidders, of whom two were active. All parties were young professional families looking for a long-term home within the school catchment zone.

Bidding opened at $2.9 million, the top of its guided range that ran from $2.8 million.

Bids rose in increments of $50,000, $25,000 and $1000 until it sold for $176,000 above its $3 million reserve for $3,176,000.

Selling agent Kevin Dearlove of Stone Real Estate Beecroft, Castle Hill and Epping said, “we’re in a very micro market”.

Dearlove credited “the quality of the school catchment … and the lack of stock” for the competitive interest in the area.

“Our buyer profiles are all professionals … They’re doctors or engineers. We’ve got a very high education focused buying pool,” he said.

The buyers are from the Hills area. The vendors are moving to Melbourne.

The stately home last traded for $287,500 in 1990, records show.

AMP chief economist Dr Shane Oliver said Domain’s clearance rate of 51 per cent for Sydney was “still soft”.

Oliver said he thought the clearance rate was more likely to be 55 or 60 per cent if not for the tax changes.

With Elizabeth Redman