Sydney auctions: clever way homeowner made $133,000 a year from his unit – realestate.com.au

A homeowner in Sydney’s eastern suburbs has made a sale profit of almost $950,000 on a home he owned for seven years – without carrying out any renovations.

The three-bedroom unit in Coogee sold at auction this weekend for $3.01 million, $401,000 above reserve, and well above the $2.08 million price the seller paid in December 2018.

The windfall from the sale equated to an average increase of almost $133,000 for each year the sellers owned the Carrs Ave property.

Five buyer parties registered to bid with selling agent Mark McPherson of Sothebys International Realty, who said competition was “fierce”.

The auction was originally scheduled for later this month, but was brought forward.

“They all really wanted it, you could see it in their eyes,” McPherson said.

1/63 Carr Street, Coogee sold at auction for $3.01 million.

---

Auctioneer Jake Moore of Cooley said he was surprised by the price, which was high for an older example, even by Coogee’s high standards.

“I walked through it at first and thought it was worth about $2.7 million. That would have been a good price,” he said. “It’s Coogee, but it still costs over $3 million for a unit. It’s a huge price.”

Mr Moore said it was too early to say whether the sale was indicative of the state of the market or just a case of a rare, well-positioned property attracting buyers with bigger budgets.

“My suspicion is that the market is still quite strong because there are not enough listings,” he said.

“The real test of the market and the impact of this week’s rate cut will probably come in two weeks, when there will be many more auctions, especially for (homes).”

Mr McPherson said he expected properties in the eastern suburbs to attract strong demand, even with the rise in interest rates, as most buyers were financing their purchases with home equity.

MORE: Suburbs where homeowners get $200,000 richer every year

Buying agent Richard Carwin of Lumin Property Buyers placed the winning bid on behalf of his client, a single professional. Photo: Monique Harmer

---

“Even first-home buyers in this region often have an inheritance behind them. They can borrow less. The interest rate increases do not affect them that much,” he said.

“There is still a shortage of quality inventory on the market and many buyers are still looking.”

The winning bidder for the Carr Ave unit in Coogee was a professional single, represented at the auction by buyer’s agent Richard Carwin of Lumin Property Buyers.

Mr. Carwin said he came up with a strategy to open bidding low and “tire the other buyers.”

Only $1,000 separated the winning bid from the next highest bid and Mr. Carwin said he only had $1,000 left in his budget to play with.

“My client’s brief was that she wanted something close to the beach. This unit had a community garden so it was more like a semi and they can sell locally for almost $6 million.”

COMPETITION STILL STRONG IN SOUTH

A dated three-bedroom house in Cronulla sold at auction for $3.08 million, $208,000 more than reserved.

There were three registered bidders for the house at 7 Howie Ave, which was for sale for the first time in two decades, and the buyer was a developer.

7 Howie Avenue, Cronulla.

---

Auctioneer Andrew Cooley of Avenue Auctions said there was enthusiastic bidding because of the 21 meter facade and R3 zoning, which meant there was room for redevelopment.

“There hasn’t been much impact yet from this week’s rate hike,” Cooley said.

INVESTORS DOMINATE IN THE WEST

A clad house on an unusual triangular block in Chester Hill has sold at auction for just under $1.43 million, $38,000 more than reserved.

52 Bent Street, Chester Hill.

---

Seven bidders registered to bid on the house in Bent St. Five were investors.

“About 80-90 percent of our buyers in Chester Hill are investors right now,” says sales agent Jordan Le Breux.

He added that the interest in a property in such an unusual block was a ‘surprise’.

“There is a bit of desperation among buyers with a pre-approval that is about to expire,” Le Breux said.

MORE: ‘Don’t Do It’: Renovations That Devalue Your Home