‘Affordable for Coogee’: Local couple pays $2.5m for two-bedroom semi

A local upsizing couple secured a semi in Coogee for $2.5 million at auction on Saturday, a price that the selling agent described as “affordable for Coogee”.

The “half a house” at 5 Ritchard Avenue had a swimming pool, lower level with potential to improve and a lockup garage.

The property was one of 709 scheduled to go to auction in Sydney last week. By Saturday evening, Domain had recorded a preliminary auction clearance rate of 57 per cent from 433 reported results throughout the week, while 125 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate

Six parties registered on the two-bedroom property in the coastal postcode, with a guided range of $2.2 million to $2.4 million. Most were upsizing families, but some were builders looking to renovate.

Bidding opened at $2.3 million, instantly meeting the property’s reserve. Three parties were active, with rises of $50,000, $10,000 and $5000 to climb $200,000 above the reserve until the hammer fell at $2.5 million.

Sotheby’s Marnie Seinor said it was a “good opportunity for lots of young families to upgrade”.

“People are just nervous about spending the money [on] marketing, and people are just holding for fear of not selling. But things are selling, and this is an example of that.”

She said the property is a “semi … a half a house”.

“It’s affordable for Coogee, and it was livable and then lends itself to a lot of potential.”

The buyers are upsizing from an apartment in Coogee. The vendor has moved to aged care. The home last traded for $390,000 in 1994, records show.

In Cremorne, a clean and tidy three-bedroom apartment sold for $3.5 million to a downsizer from Riverview.

The boutique unit with leafy water views at 7/45 Grasmere Road had a guide of $3 million and drew three registrations who all participated.

Bidding opened at $2.9 million and rose in $50,000 and $25,000 increments at a rapid pace before the apartment sold under the hammer for $300,000 above its $3.2 million reserve.

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

Belle Property’s Matthew Smythe said: “It’s a good market for downsizers and upsizers. Upsizers, clearly financially; it’s a huge win for them because they can step up and save money on the changeover costs.”

“But for downsizers as well. If you want to buy a lifestyle, it’s already cheaper than it was six months ago, and the smart ones understand that and want to get on with the next 10 years of their life.”

The vendor is moving to Queensland. The unit last traded for $1,815,000 in 2012, records show.

In Lindfield, a well-maintained three-bedroom unit at 21/2B Havilah Road drew two registered bidders.

The apartment on a quiet leafy street was guided at $2.58 million and had a reserve of $2.6 million. It sold below its guide, and $150,000 under its reserve, for $2.45 million.

Only one bidder made an offer, opening the auction at $2.3 million, and then increased it to $2.4 million. Negotiations further lifted the price to $2.42 million before a final offer was made of $2.45 million. The vendor accepted, adjusting their reserve to sell.

Ray White’s Jessica Cao said: “A lot of my vendors at the moment, they’re downsizing. Yes, the market’s different. However, if they buy and sell in the same market, it doesn’t matter too much.”

“What I do see is my downsizer vendors are pretty cautious. They want to sell first to know how much money they have before they commit [at] the other end.”

The buyer is downsizing from a five-bedroom home in Lindfield. The vendor is relocating overseas.

The flat last traded for $1,528,000 in 2014, records show.

AMP chief economist Dr Shane Oliver said that Domain’s clearance rate of 57 per cent for Sydney was “still a weak market”.

“To me, it remains a perfect storm for the property market. We’ve got higher and rising interest rates. We’ve got big tax changes making it far less attractive for property investors, and we’ve got poor levels of confidence.”

Oliver expected another rate hike and said debate centred on whether there would be two more hikes.

“Because vendors are holding back, that’s limiting the supply, and consequently, the clearance rate has been able to rise because we’ve got less listings, so it’s not necessarily a sign of strength,” he said.

“The only thing that’s helping the market is that vendors are holding off, possibly hoping for better prices.”

Oliver said the real test will come once the spring selling season picks up in October.

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Carmen Forward is a freelance writer covering lifestyle and propertyAdvertisementAdvertisement