Inner west five bedder sells for $7m despite ‘inconsistent’ market

A family of six returning to Australia from Singapore paid $7 million for a five-bedroom home in Balmain at auction on Saturday.

All three registered bidders vied for the keys to 14B Grafton Street with bidding opening at $6.4 million. Bids went up in increments of $50,000 until it reached $6.9 million when they slowed to smaller bids of $10,000 and $1000 and the property sold.

It had a guide of $6.8 million and a reserve of $7 million.

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

The successful bidders were attracted by the ability of the property to accommodate the whole family, including their four teenage and young adult children. The underbidders were a couple from the inner west who had been looking to buy for two years.

Sales agent for Belle Property Balmain, Monique Dower, said the vendors plan to downsize. She said while the market remained “inconsistent”, the auction environment was still the best method to get a property sold.

“Shorter days on market is always the best way forward to create competition and get a result,” she said. “We had realistic vendors with realistic expectations.”

The property was one of 732 scheduled to go to auction in Sydney this week.

In Coogee, in Sydney’s east, a three-bedroom unrenovated house less than 15 minutes’ walk from Coogee Beach sold for $3,315,000.

Nine parties registered to bid for the Federation-era house on a 342 square metre site, with six bidders raising their paddles. Bidding for 29 Melody Street started at $2.7 million, going up in increments of $50,000 until it reached $3 million, when it dropped back to smaller bids of $10,000 and $25,000 and the property sold.

It had a guide of $3 million and a reserve of $3.2 million. The vendor is moving into aged care.

Ray White Eastern Beaches sales agent Angus Gorrie said the new owner was “excited about the possibilities” for the site.

He said the highest offer made for the property during the campaign was $2.8 million.

Prior to auction day, he was not expecting such a strong showing from potential buyers, who were almost exclusively builders and owner builders.

“Buyers get confidence buying off someone else in the room,” he said. “Eight other paddles were in the arena. If someone else likes it, [often] it makes them like it more.”

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