Sydney auctions: Long weekend results provide key insights for first home buyers

Big sales across Sydney today have revealed insights into several of Sydney’s key battlegrounds for first home buyers (FHBs), particularly in the chase for affordable units.

One apartment auction today was almost entirely contested by FHBs, while another revealed where FHBs don’t have to compete with investors.

According to one agent, entry-level Sydney units in one area are not being snapped up by out of town investors, but by the bank of mum and dad.

The Labour Day long weekend brought about a lull in auction activity in Sydney today, with total volume a fraction of what it was last Saturday.

Ray White New South Wales head of auctions David McMahon said there was not a lot of choice on offer today for buyers.

“As predicted for the long weekend, we saw a low level of scheduled auctions today sitting at just 76 compared to 196 last week,” he said.

While auctions were sparse, Mr McMahon said the recent cash rate decision meant the auctions that were on saw plenty of action.

“The interest rates being kept on hold and the expansion of the incentives for first home buyers this week provided continued confidence to our buyers today, as we averaged 4.9 registered and three active bidders today.”

“With the low auction volume this weekend it’s perhaps too early to see the true impact of those announcements but the early signs are positive.”

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NORTH

It was a local affair in Manly on Saturday morning, as an apartment on 39 Eurobin Ave sold to a couple who live just 200m down the road.

Selling agent Tim Cullen of McGrath Manly said it was an “emotional” sale for the vendors, with the property having been in their family for the last 42 years.

Mr Cullen said a huge crowd of around 80 were in attendance to see the unit sell for $2.02m, a price $302,000 over reserve.

The price was also well above Manly’s median unit price of $1.73m, which has dropped 3.9 per cent in the last 12 months.

Mr Cullen said the market for units in the Northern Beaches was getting stronger.

“I think the market’s stronger,” he said.

“I’ve sold three properties this week, all in excess of their guides.”

According to Mr Cullen, a number of these sales have been won buy parents buying for their children.

“There have been a lot of mums and dads bidding on behalf of their kids,” he said, “probably trying to get them before we see an influx of higher prices with the new government legislation.”

The Northern Beaches market is in a state of transition according to Mr Cullen, as apartment stock begins to return.

“Northern Beaches at this time of year brings in both local and out of area buyers,” he said.

“Stock was low throughout winter and now there’s better quality of stock and buyers are transacting so consumer confidence seems to be better.”

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EAST

A coastal apartment at 314 Bondi Rd sold for $1.8m around midday, as the vendors walked away with $250,000 more than the advertised buyers guide.

Bidding on the apartment with Bondi Beach views began at $1.5m, in what auctioneer Clarence White described as a “well contested auction” in which two bidders “duked it out” in the final stages.

Mr White said four bidders were registered and a crowd of about 25 gathered for the auction.

Selling agent Charlie Beaumont of PPD Real Estate said the vendors – who have owned the property for 10 years – are now looking to purchase in the Byron Bay area.

The two-bedroom apartment sold for approximately $380,000 above Bondi’s median unit price of $1.42m.

The winning bid came from a local owner-occupier. According to Mr Beaumont, the registered bidders who missed out were all first home buyers.

According to Mr White, the market for apartments in the Eastern suburbs is inconsistent as buyers remain “price cautious”.

“Some apartments have gone well lately and some have been really tough to sell,” he said.

“So, it’s still a really mixed bag in the market.”

Mr White said apartment buyers in the area were “nearly all owner occupiers”.

“We’re really not seeing many investors at all,” he said.

“I think the rates are probably still keeping the investors out as they have done for most of the last 18 months.”

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NORTH WEST

In the market for homes, it was a sweet Saturday afternoon for one Epping family, whose property on Kandy Ave sold under the hammer for $331,000 over reserve.

The massive seven-bedroom, six-bathroom home attracted six registered bidders and drew a final price of $3.61m.

Four bidders were active on the day, among a crowd of over 50 onlookers.

The sale marked the start of a new chapter for vendor Jason Ge and his family, with his daughter having flown the nest.

“We have moved now and we have downsized as it’s such a big house,” he said.

“We don’t need so much room now as our daughter has moved out, but it is a perfect spot.”

Selling agent Tian Hong of Ray White Epping said it was “an amazing auction” which marked the end to a busy campaign.

According to Ms Hong, the home attracted the interest of 36 groups of buyers in the lead up to auction day.

“There was good competition from all six groups who were registered at the auction,” she said.

According to Ms Hong, the winning bidders were a family from Leichhardt who were looking to upsize.

“They can’t wait to have some room to move, as their house in the inner west is 300 sqm,” she said.

“There is so much more land here in Epping.”

Their new home on Kandy Ave sits on a whopping 1069 sqm block with a 20m frontage, more than triple the size of their previous home.

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Ray White NSW chief auctioneer Alex Pattaro said bidding on the property opened at $2.7m in an auction that had a “really good atmosphere”.

According to Mr Pattaro, the positive result stems from a North West market that is in “the best position it has been in in quite some time”.

“We’ve seen really strong demand across all of Sydney, particularly in the pocket of Epping, Carlingford and into The Hills,” he said.

Mr Pattaro added that particular in the North West, it was a seller’s market.

“We’re getting some really good property prices, so it’s a great time to sell,” he said.

Epping’s median house price currently stands at $2.688m, having risen by 7.1 per cent in the last 12 months.

Neighbouring Eastwood and Carlingford’s median house prices have also risen by 2.9 and 6.1 per cent respectively.

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