Chinese bidders push townhouse ‘88’ over reserve

A two-bedroom, one-bathroom townhouse in Sydney’s Surry Hills has sold for more than $200,000 over reserve, and it may be partially due to the number.

Having been tightly held for more than 50 years, 88 Campbell Street, Surry Hills, has sold for $840,000 after being listed with a $640,000 reserve.

For Jonathan Chancellor's insights about the sale, read his perspective on Surry Hills auction price silliness here.

The approximately 51sqm rundown townhouse, with no yard or car space, was said to have gone for the price for a number of reasons, one of which may have been the house price number.

Eight is an auspicious number in Chinese culture, and Ray White Surry Hills/Alexandria agent, Jack McGhee, who sold the property said it was a busy auction with a number of Chinese buyers. The 'double luck' number of 88 might have made a difference, he said.

The mixed commercial/residential zoned property was advertised as a ‘renovator’s delight’ and attracted a number of people to the 9am Saturday auction.

There were 24 registered bidders on the day, with eight actively bidding and two at the end “going for it” McGhee told Property Observer.

Interestingly, the property was on a T-intersection, which he said may be seen in a bad light by many Chinese buyers.

The final buyer, an investor, will be required to spend $250,000 to $300,000 on the property to get it back to a livable condition.

“It has been empty for ten years, it’s derelict [and] unlivable,” he said. As a previous family home, the owner then moved on to a nursing home, holding the property for several years before putting it onto the market.

A property with similar specs, at 172 Campbell Street, Surry Hills, currently has an online valuation ‘guesstimate’ of $678,100 to $764,100.

Meanwhile, McGhee pointed to a townhouse nearby that sold last year for $765,000 but was fully renovated.

Throughout the 28-day auction campaign the property achieved a lot of interest, with offers from $440,000 to $640,000 prior.

“Everything is going pretty strong, but there's not many of these left around in Surry Hills anymore, there aren't that many derelict properties in Surry Hills,” he said.