First homebuyer in his 20s nabs Paddington terrace for $1.7 million

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First homebuyer in his 20s nabs Paddington terrace for $1.7 million

This article was first published by  via domain.com.au on 27 Aug 2016 | Image: Auctioneer David Gray in action at 80 William Street Paddington. Photo: Katherine Griffiths

 

A first homebuyer in his 20s nabbed his first property in inner-city Paddington, paying $1.7 million – $145,000 over the reserve – for a two-bedroom terrace on Saturday.

 

It was just one of 574 Sydney auctions, with low listing numbers and low interest rates fuelling the strong market. With 408 results in by Saturday evening, Domain Group put the clearance rate at 80.7 per cent. “Sydney’s spring market has predictably opened strongly with another boom-time clearance rate,” chief economist Dr Andrew Wilson said. 

 

The result was slightly down on last week’s 84.1 per cent, though homes sold for as much as $500,000 over their reserve.

 

There was furious bidding between three investors for 80 William Street, which despite being on just 89 square metres and having no parking, could easily become a shop like the others surrounding it thanks to commercial zoning. 

 

But the young man’s bid – his first – left the others for dead. “It was my first bid and my first home,” he confirmed before what looked to be the bank of Mum and Dad whisked him into his new home and banned any further comments.

 

It’s understood he will live there, which is what vendors Stuart and Renee Brown did when they bought it for $1,145,000 in 2011. It had been a lingerie shop back then. “It was fantastic living here,” Mr Brown said.

 

But the couple, with two-and-a-half-year-old Mackenzie, are now based in New York. The terrace, which had a bathroom upstairs and another downstairs, had been fetching $1100 a week in rent.

 

“We’re very happy with the result,” Mr Brown, who works in banking, said. Brigitte Blackman, of LJ Hooker Inner City, just wishes she had more properties on her books for the start of spring next weekend.

 

“It’s just amazing what we’re seeing … quite low stock levels but such huge demand, as we saw today, with lots of bidders.” 

 

On the lower north shore at Cremorne Point, a five-bedroom home on three titles at 23 Cremorne Point Road sold $500,000 above reserve for $6.4 million, a record price for a property put to auction in the suburb.

 

The previous highest auction sale in the suburb was last year at 17 Milson Road, which went for $6.19 million.

 

Selling agent, Matthew Smythe of Belle Property Neutral Bay said: “This is the new normal in the best parts of Sydney,” attributing lack of stock and low interest rates for strength in his local property market.

 

On the upper north shore at Gordon, a three-bedroom cottage at 54 Moree Street, Gordon sold for $2,209,000 – $409,000 above its reserve.

 

There were 10 registered bidders for the deceased estate on 1141 square metres, which had been in the same family for 75 years. It sold through Jayne DeMaio at Richardson & Wrench St Ives  “We took an incredible 66 bids,” auctioneer Stu Benson said. 

 

In the eastern beachside suburb of Coogee, a renovated, three-bedroom semi at 17 Dans Avenue sold for $2.26 million – $260,000 over reserve.

 

Phillips Pantzer Donnelley agent Doreen Wilson had 100 groups inspect and said buyers are feeling frustrated. 

 

“One buyer said they will have to go back to the bank to try to get more money,” she said. “They don’t want to move elsewhere because their roots are here.” 

 

But she predicts more property will hit the market as sellers recognise the strength of the market. “Spring will run into summer … there will be a late kick,” she said.

 

In the north-west suburb of Gladesville, a four-bedroom charmer at 9 Orient Street sold for $2.26 million – $260,000 over reserve – through Richard Mion of Richardson & Wrench Gladesville.

 

And in the inner city, a stylish two-bedroom apartment at 201/28 Bellevue Street Surry Hills  went for $1.4 million – $100,000 over reserve – through Matthew Hayson of Cobden & Hayson Balmain.

 

In the south, a five-bedroom house at 48 Staples Street Kingsgrove was hotly contested between eight of 12 registered bidders, selling for $1,615,500 – $250,000 over reserve – through George Boghos of Ray White Bexley North & Kingsgrove.

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Getting into the property market in any capital city in Australia is not easy but it will be highly rewarding over time.McGrath auctioneer Mike Divito in action at 41 Johnson St, Northcote, on Saturday. Photo: Arsineh Houspian