Auctioneer Jake Moore from Cooley at the auction for 1/63 Carr St, Coogee. Picture: Monique Harmer
A homeowner in Sydney’s eastern suburbs has scored a resale profit of nearly $950,000 off a unit they owned for seven years – without doing any renovations.
The three-bedroom unit in Coogee sold at auction on the weekend for $3.01m, $401,000 above reserve, and well above the $2.08m price paid by the vendor in December 2018.
The windfall off the sale equated to an average rise of nearly $133,000 for every year the vendors owned the property on Carrs Ave.
Five buyer parties registered to bid with selling agent Mark McPherson of Sothebys International Realty, who said competition was “intense”.
The auction was originally slated for later this month but was brought forward.
“They all really wanted it, you could see it in their eyes,” Mr McPherson said.
1/63 Carr Street, Coogee sold at auction for $3.01m.
Auctioneer Jake Moore of Cooley said he was surprised by the price, which was high for an older unit, even by Coogee’s lofty standards.
“I first walked through thinking it was worth about $2.7m. That would have been a good price,” he said. “It’s Coogee, but it’s still over $3m for a unit. It’s a huge price.”
Mr Moore said it was too early to tell if the sale was indicative of the state of the market or just a case of a rare, well-positioned property attracting buyers with larger budgets.
“My hunch is that the market is still fairly strong because there aren’t enough listings,” he said.
“The true test of the market and the impact of this week’s interest rate cut will probably be in two weeks’ time, when there will be a lot more auctions, especially for (houses).”
Mr McPherson said he expected blue chip real estate in the eastern suburbs to attract strong demand, even with the rise in rates, because most buyers where funding their purchase with equity.
MORE: Suburbs where house owners are getting $200k richer each year
Buyers agent Richard Carwin from Lumin Property Buyers placed the winning bid on the behalf of his client, a single professional. Picture: Monique Harmer
“Even the first-home buyers in this region, they often have an inheritance behind them. They can borrow less. The rate hikes don’t affect them as much,” he said.
“There is still a shortage of quality stock on the market and a lot of buyers still looking.”
The winning bidder for the Carr Ave unit in Coogee was a professional single, represented at auction by buyer’s agent Richard Carwin of Lumin Property Buyers.
Mr Carwin said he came in with a strategy to open the bidding low and “get the other buyers fatigued”.
Just $1000 separated the winning bid from next highest offer and Mr Carwin said he only had $1000 left in his budget to play with.
“The brief from my client was that she wanted something near the beach. This unit had a shared garden, so it was more like a semi and they can sell in the area for almost $6m.”
COMPETITION STILL STRONG IN SOUTH
A dated three-bedroom house in Cronulla sold at auction for $3.08m, $208,000 over reserve.
There were three registered bidders for the home at 7 Howie Ave, up for sale for the first time in 20 years, and the buyer was a developer.
7 Howie Avenue, Cronulla.
Auctioneer Andrew Cooley of Avenue Auctions said there was spirited bidding due to the 21m of frontage and R3 zoning, which meant it offered scope for redevelopment.
“There hasn’t been much impact from this week’s rate hike yet,” Mr Cooley said.
INVESTORS DOMINATE IN WEST
A clad home on an unusual triangular block in Chester Hill has sold at auction for just under $1.43m, $38,000 over reserve.
52 Bent St, Chester Hill.
Seven bidders registered to bid for the Bent St home – five were investors.
“About 80-90 per cent of our buyers in Chester Hill are investors right now,” said selling agent Jordan Le Breux.
He added that interest for a property on such an unusual block was a “surprise”.
“There is a bit of desperation from buyers with pre-approval that’s about to expire,” Mr Le Breux said.
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