Sydney auctions: Sellers get $430k extra under the hammer as buyer competition rises

Two to three bidders at auction was largely the norm over winter, but interest in property sales has been ticking up over spring, with multiple auctions attracting over 20 bidders.

Among them was the auction for an “original condition” brick house in West Pymble, which drew a crowd of about 100 people, including 24 registered bidders.

The $1.93 million price for the Wallalong Cres house built in the 1950s was $430,000 over reserve. It was reported to have left the family of the long-term owner – who was aged over 100 – elated.

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In Greystanes, a house that was the most popular auction listing on property portal realestate.com.au last week attracted 23 registered bidders. The $1.291 million price for the Gardenia Pde home was $91,000 over reserve. A similar house in Castle Hill attracted 18 bidders.

It comes as Sydney’s auction clearance rate – which measures the proportion of scheduled auctions resulting in a sale – bounced back up to 60 per cent, an increase on the circa 55 per cent rate recorded over much of winter.

Agent Phil Orr of Orr&Co, who sold the West Pymble home, said it attracted two dozen bidders because it was a cheaper entry point into the popular north shore suburb.

The 715sqm block also meant there was scope to redevelop the site. Modern houses on the street were typically worth about $4 million, Mr Orr said.

“The house is in original condition, but there was a lot of potential and buyers saw it as a way to get into the suburb for a little less … we have a huge database of buyers looking for a property just like it,” he said.

More than 200 groups of prospective buyers inspected the home in the lead up to Saturday’s auction.

The buyers who placed the final bid were a family with plans to rent the home out after a basic cosmetic renovation.

Their hope is to eventually knock the house down and replace it with a modern build when construction costs ease and the housing market begins to recover. They will occupy the new home.

Auctioneer Edward Riley said it took a minute or so for the bidding to start at $1 million, but once the registered parties saw other buyers bidding they began to take a more active part in the proceedings.

“There are a lot of buyers willing to make an offer, but in this market they often need social proof,” Mr Riley said. “They want to see other people bidding before they start bidding.

“Often you’ll find if there is only two registered bidders, they will look at each other and neither will place a bid. They only get confident when they see that social proof.”

Mr Riley said this weekend’s auctions were much more “free flowing” than in previous weeks, which he attributed to vendors accepting the slower market and pricing their properties at lower levels.

The West Pymble home was one of nearly 700 auctions held last week – the highest volume of sales so far this spring.

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