Same auctioned Sandringham house shows 15% annualised price growth
The Sydney auction market started its 80% auction clearance rate some four months ago.
It's barely skipped a beat since.
Price growth has joined the party, but not every pocket of Sydney has been securing exceptionally strong gains.
Headline grabbing above-reserve auction results have been an emerging trend, but reserves can be quite subjective, and thereby aren't truly representative of the actual price movement.
But the resale of the same property provides the better indicator. Not that they are necessarily truly representative either.
One stellar resale example came in Sydney's Sandringham when a three bedroom cottage - with 2011 approved plans for a contemporary four bedroom residence - sold under the weekend auction hammer.
Set on a 520 square metre block - with polished timber floorboards and high period ceilings - the house fetched $1,411,000 through Ray Fadel of Raine & Horne Sans Souci.
The auctioneer, Will Hampson of My Auctioneer tweeted he had secured $1,121,000 18 months ago for 15 Dickin Avenue (pictured below) when also auctioned through Ray Fadel, ie 15% annualised growth.
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It was marketed as "perfect to live in now and re-build later, this neat and tidy sun drenched property is surrounded by quality homes which provides a great opportunity to enter the Sandringham market at an affordable price."
"Would suit down sizers, young families or owner builders."
And significantly it sold to an owner builder who after beating off rival builders will enjoy all the advantages of undertaking the work himself on his principle place of residence.
Hampson commented there had been the 10 registered bidders.
The bids came quickly, he noted, even after it was announced on the market at $1.27 million when three fought it out.
"I've been auctioneering 18 years now with 15 years of that in property and in many lately the bidding feels like I am back auctioning livestock," he tweeted.
The Sandringham property has been actively traded, selling prior to it current renovated status in October 2010 at $990,000, reflecting 9% annualised growth between 2010 and its 2012 sale. It sold at $860,000 in 2004.
It's recent rental yield was reflected after its 2012 sale when it was offered at a $700 weekly rental, a 3.2% gross yield. RP Data gives the suburb's median house price as $1,265,000 with a 3.1% gross indicative yield.
I just sold a house I auctioned 18 months ago for $1,121,000 today I got $1,411,000 that's $290,000 in 18 months now that's a hot auction !
— Will Hampson (@willhampson) October 5, 2013
But the weekend auction bidding was subdued at nearby Ramsgate Beach, on Botany Bay where a triple-storey newly completed beachfront property at 6 Florence Street fell short of its $2.4 million reserve to sell for $2.3 million. It was built on its 456 square metre block that cost $890,000 in 2007.
There were seven registered bidders with four bidding.
APM reported a five-bedroom Strathfield property was Sydney’s highest weekend auction result at $2.73 million sold through Devine Real Estate agent Roger Agha. The most affordable property reported sold at the weekend was a two bedroom unit at 20/1 Tuggerah Parade The Entrance which sold for $235,000 through Ray White Budgewoi.
There were fewer auctions due to the long weekend - just 259 - but the overall 81.8% continued the weekend before when there were about 600.
The upper north shore’s 94% success rate topped the inner west’s 91% from 81 auctions. The lower north shore secured 91% and the south had a 90% clearance rate from its 70 auctions.
While the onsite weekend rate sat above 80%, the addition of mid-week results produced an overall Sydney auction market of 78.6% which Dr Andrew Wilson, the APM senior economist described as the best September ever.
