Auction momentum continues as Surry Hills terrace sells $700,000 over reserve

Auction momentum continues as Surry Hills terrace sells $700,000 over reserve
Auction momentum continues as Surry Hills terrace sells $700,000 over reserve

The $3.3 million sale of a Surry Hills terrace for $700,000 above reserve at auction saw a final $50,000 knockout bid.

The three-level Bourke Street terrace (above and below) sold after competition from around eight of the 14 buyers registered.

There were four bidders in the final $150,000.

Agent Michael Kirk of BresicWhitney said the property’s position near the soon to be completed Sydney Light Rail was "a considerable draw."

“Now that the light rail is starting to near completion it’s starting to benefit a lot of the nearby housing,” Mr Kirk said.

Auction momentum continues as Surry Hills terrace sells 0,000 over reserve

He added that he had known the property would attract strong bidding in the post-election house market but was surprised just how competitive the auction had turned out for 625 Bourke St.

It had a $2.4 million price guide. There had been a nearby $3.05 million early last year.

The weekend offering was a five bedroom corner terrace, just four doors from Devonshire Street, which had appeal to investors and part-owner occupiers since it had been converted to two apartments.

Investors were anticipating $1,850 a week.

Not all Sydney terrace auctions had prices flying past reserve.

At Glebe $1.21 million was paid for a two bedroom terrace on Lyndhurst Street (below) which was below its $1.45 million hopes when it failed to sell last July.

Its price fell short of doubling its last sale price of $635,000 in boom time 2003.

Auction momentum continues as Surry Hills terrace sells 0,000 over reserve

Matthew Carvalho of Ray White was quoting a $1.1 million guide for the weekend auction with it announced on market at $1.205 million.

The national preliminary clearance rate sat at 69 per cent across the combined capital cities.

There were 854 homes taken to auction down slightly on the prior week's 953 homes when there was a 64 percent final clearance, the highest final clearance rate since April last year.

The final clearance rate has held above 60 per cent for the last four weeks.

Over the same week last year, auction activity was higher with 1,178 homes taken to auction returning a clearance rate of 52 per cent.

Melbourne was the busiest with 352 auctions returning a preliminary clearance rate of 73.6 per cent.

The volume in Melbourne was down on the 388 prior week offering but up on the final clearance rate of 67.2 per cent.

"Melbourne’s final clearance rate has held above 65 per cent for theist 3 weeks and it’s looking like this week will return a similar result," Kevin Brogan said.

Over the same week last year, Melbourne had a clearance rate of 56.2 per cent was recorded across 559 auctions.

Melbourne's top weekend result was at Malvern at $2.555 million. The 43 Cawkwell Street, Malvern offering (below) had $2.32 million to $2.4 million price guidance from its selling agent Barbara Thomas at Thomas Moreland.

There was no heritage overlay on the three bedroom house set on 618 sqm. It last sold at $75,000 in 1981.

Auction momentum continues as Surry Hills terrace sells 0,000 over reserve

There were $1000 bids when the auction at 14 Woodhouse Grove, Box Hill (below) saw Ray White agent Hugh Francis secured $1.09 million, some $150,000 above reserve with six bidders.

“At $1,020,000, it got down to $1000s and $2000 bids,” agent Hugh Francis said. 

Auction momentum continues as Surry Hills terrace sells 0,000 over reserve

Its price guidance had been $880,000 to $968,000.

Sydney recorded a preliminary clearance rate of 77.2 per cent across 318 auctions.

Auction momentum continues as Surry Hills terrace sells 0,000 over reserve

Over the previous week, 71.3 per cent of the 359 auctions were successful, the highest final clearance rate the city has seen since in over two years.

"This week’s final figure may just hold above 70 percent again as remaining results are collected," CoreLogic auction analyst Kevin Brogan said.

One year ago, 408 auctions were held across Sydney returning a final clearance rate of 46.9 per cent.

Across the smaller auction markets, Brisbane saw higher volumes week-on-week while all other cities saw fewer homes taken to auction.

Dr Andrew Wilson, chief economist of MyHousingMarket.com.au commented that the lowering weekend auction volumes had declined "to what are now remarkably low levels – particularly in Sydney and Melbourne – even for the typically quieter mid-winter housing market."

Buoyed by lower interest rates and a well-overdue easing in lending conditions, Dr Wilson said the "acid test" for a recovering market will however come in just over a month.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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