Inner west home sells $100,000 above reserve in fast and furious auction

A young couple renting locally won the keys to their first home on Saturday, paying $981,000 for a two-bedroom apartment in Marrickville at auction.

Three parties registered to bid for the mid-century home at 2/35-37 Pile Street, with two active. Bidding opened quickly at $950,000, the same as the guide, going up in increments of $5000 and $1000 until it reached $976,000 when it stalled.

One party made a further bid of $4000 to $980,000 at which point the reserve was renegotiated to $1 million. The same bidder then increased their bid to $981,000 and the property sold.

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

The successful bidders were attracted to the boutique size of the block, which has 10 units, and the quiet, tree-lined street. The underbidder was an owner-occupier seeking to return to the Marrickville area from north west Sydney. The vendor is hoping to upsize.

Sales agent for Adrian William, Norman Tran, said the size of the bids and re-adjusted reserve were an indication that there was still a “price sensitivity” in the market.

“That is requiring vendors to re-align expectations if they want to sell,” he said.

Turnkey properties are also giving vendors the edge, he said, as buyers shy away from the added expense of renovating.

The property was one of 637 scheduled to go to auction in Sydney this week.

In Sutherland, a young couple expecting their first child were successfully bid for a five-bedroom home with pool, paying $1.88 million.

Four parties registered to bid for 24a Glencoe Street, including groups on the phone from France and Britain, with three active.

Bidding opened at $1.7 million, the same as the guide, followed by increments of $50,000, and then $10,000, $5000 and $1000 before the hammer fell.

The property had a reserve of $1.8 million. The winning bidders and the underbidder, an English-Australian couple who had first seen the property when they were overseas, were both on site. The vendor plans to downsize.

Luke Lombardi, sales agent for Pulse Property Agents, described the auction as “quick and effective”. He said the latest interest rate rise had motivated some buyers to act.

“Buyers are cautious that if another rate rise happens, their preapproval [loan] finishes, and they may lose some of their budget.”