Art deco Surry Hills studio sells for $220,000 reflecting 7% annual growth

The cheapest Sydney property sold on the mega pre-Easter super Saturday was a 15 square metre studio in the Belgenny, Surry Hills apartment block which fetched $220,000.

That's $14,600 a square metre in the 1937 art deco block.

It was on the third floor at 305/389 Bourke Street on the Campbell Street corner, overlooking Taylor Square, selling through through Bill Lazaris Real Estate in conjunction with Raine & Horne Commercial agent Jayne Edwards.

It last sold at $124,500 in 2006, reflecting seven percent price growth, and before that at $68,000 in 1995, $53,5000 in 1993 and $53,000 in 1992.

The studio, which overlooks the lively Taylor Square, was offered vacant possession but with a current annual rental income of $14,300 - around $275 a week since tenanted in mid-2011 - reflecting a 6.5% yield.

The light filled 15 square metre studio was offered in original condition with kitchenette and bathroom.

It was marketed by the local agent Bill Lazaris as a "great investment opportunity for your SMSF, inner city pad or first home buyers.

Bill Lazaris told Property Observer the investor buyer had already asked the tenant to vacant when convenient so a renovation can get underway.

"It offers a pretty good return as is," he added.

There were eight registered buyers who attended the 15 square metre studio auction which was held concurrent with the auction of a same floor 34 square metre studio unit that fetched $320,000, up from its $245,000 sale in 2008. It had a $20,800 annual income, again reflecting a 6.5% rental yield and 4.3% annual price growth during the past six years.

Mr Lazaris told Property Observer he has secured a $200,000 sale late last year in the nine storey apartment block that reflected $16,600 a square metre sale price.

Strong seven percent price growth isn't guaranteed highlighting the importance of not overpaying.

A recent seventh floor one bedroom sale at $352,500 was only marginally higher than the $320,000 sale secured in boom time 2003 when offloaded by the Cameron Oates Property group. Its price growth during the decade was not even one percent per year. It has since become available at $400 a week rental, reflecting 5.9% rental yield.

The most expensive property sold on Sydney’s mega super Saturday was a Northwood waterfront with the lower north shore offering selling for $4.95 million with three registered parties.

With views over Woodford Bay from its 845 square metre holding, 111B Northwood Road, Northwood, attracted a $4.6 million opening bid.

It was passed in at $4.75 million selling shortly afterwards, reflecting $5,850 a square metre.

McGrath agent Brent Courtney told Fairfax Media that the vendor's selling reserve was “adjusted” during the negotiations.

Canterbury Bankstown reported the highest regional clearance rate in Sydney at the weekend with a strong 89.1% result.

The next best district was Sydney's northern beaches at 85.5% followed by the south with 83.3%, the lower north with 82%, and the north west with 81.8%.

The inner west's 81% represented the district being in the unusual position of being at the weaker end of the auction market.

"Sydney’s record-breaking early autumn auction market takes a well-earned breather over the next two weekends with the distractions of the Easter and ANZAC Day holiday breaks," APM's senior economist Dr Andrew Wilson said.

"The market will pick-up over the weeks following the break but lower buyer and seller activity can be expected moving into the typically quieter winter period.

"Not surprising perhaps given record listing numbers, Saturday’s clearance rate failed to reach 80% for the first time this year.

"After recording 10 consecutive weekends with a clearance rate at or above 80% since 1 February, the market stepped back just a fraction for a nonetheless strong 78.1% result.

"Although record listing numbers were a factor in a reduced clearance rate this weekend, the result nevertheless adds to the recent downward trend that indicates a moderating of buyer activity as affordability constraints start to bite in the market," he added.