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

A first home buyer moving to Sydney from Newcastle paid $975,000 for a two-bedroom apartment in Alexandria at auction on Saturday.

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

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

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

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.”

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

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 local young family who plan to rent out the property before renovating. 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.”