Inner-city apartment sells for $975k as ‘cautious’ market absorbs rate hike

A two-bedroom art deco apartment on a corner block in Summer Hill sold to a young family from Bondi for $900,000 on Saturday.

More than 40 people packed into the living room of the 88-square-metre apartment at 2/60 Carlton Crescent, situated above a shop in the popular shopping village, as auctioneer Karen Harvey worked to keep track of bidders, some of whom had spilled onto one of the two balconies.

Nine parties registered to bid with five active. Bidding opened at $800,000, going up in increments of $10,000, then $5000 and followed by smaller bids of $3000, $2000 and finally $1000 before the hammer fell.

The property was guided at $810,000 to $820,000 and had a reserve of $860,000.

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

The successful bidders had focused their search on art deco apartments and liked Summer Hill’s “cute neighbourhood”, with one of the owners looking forward to exploring the local area while she was on parental leave.

The home is moments from public transport but is missing one popular element with buyers – it does not come with parking.

As the winning bidders, the couple were offered two bottles of champagne along with the keys – one for making the first bid and the second for making the last.

The underbidders were a local couple from the inner west. The vendor has held it as an investment, with records showing it last traded in 2003 for $292,000.

Sales agent for Belle Property Strathfield, Nancy Ying Xiong said two outdoor spaces was unusual in an apartment of this era, which was part of the reason it attracted more than 80 groups during the campaign.

Harvey said she was unsurprised by the interest in the property.

“With an art deco building, the rooms are bigger and the proportions are better, and people are looking for better value for their spend,” she said.

The number of bidders was a reflection, she said, of a transparent campaign.

“If you have vendors with realistic expectations guiding the property at an appropriate level for this market, you will still drive interest,” she said.

The property was one of 216 scheduled to go to auction in Sydney this week.

In Alexandria, a first home buyer moving to Sydney from Newcastle paid $975,000 for a two-bedroom apartment with parking designed by Stanisic Architects.

Three parties registered to bid for the keys to M601/68 McEvoy Street, with all active. Bidding opened at $850,000 followed by increments of $10,000 and $5000 before the property sold.

It had a guide of $900,000 and an adjusted reserve of $975,000.

The underbidders live locally and were hoping to upsize from a one-bedroom apartment. They had made a pre-auction offer of $900,000 but the vendors, who have already bought elsewhere, chose to proceed to auction.

The new owner was attracted to the size of the 95-square-metre apartment, which includes a north-facing balcony, as well as the proximity of the IGA supermarket, which is in the building.

Sales agent for Ray White Erskineville, Moira Verheijen said this week’s interest rate rise had created further “cautiousness” in the market.

“Interest rates have definitely had an impact,” she said.

However, she said some buyers still saw opportunity given current market conditions.

“There are buyers who understand that if they see the right house, now is the time to buy. Some buyers think they can wait because it feels like [the market] is continuing to go down but if they wait, those quality homes may not be there.”

In Baulkham Hills, a young family won the keys to a three-bedroom home, paying $140,000 above the reserve.

Bidding for 23 Merinda Avenue opened at $1.3 million, followed by two bids of $50,000, and then increments of $10,000 and $5000 until the property sold for $1.59 million.

Seven parties registered to bid for the property, which had a guide of $1.4 million and a reserve of $1.45 million, with four active.

The successful bidders were a young local family who plan to rent out the property before considering a renovation. The vendor is going into aged care.

Sales agent for McGrath Castle Hill, Jamie Benjamin, said buyers were attracted by the location, close to transport and schools, rather than the house itself.

“Most [buyers] ruled it out because the property was not, essentially, liveable,” he said. “But it’s a classic family location so it’s all about schooling and access to transport for work.”

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