Sydney auctions today revealed clear signs of impact following Labor’s landmark tax reforms, with multiple agents reporting a drop in investor interest, while home’s that were set to be standouts also fell short.
In North Bondi’s blue‑chip locale, a home tipped for a hotly contested auction passed in on Saturday – in an evident sign buyers remain cautious in the current market.
At 61 Clyde Street, North Bondi a crowd gathered to see the four registered bidders compete, but only two were active.
With a guiding price of $9.1m, the five-bedroom, two-bathroom house stalled prior to its opening bid of $8.5m, then rising to $8.7m, $8.75m to $8.85m.
Bidding then paused, followed by the announcement of a vendors bid of $9.1m by Auctioneer Clarence White of Menck White Auctions.
A final $9.15m bid was placed, but eventually, the home passed in.
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Auctioneer Clarence White at 61 Clyde St in North Bondi, that passed in at $9.15m Picture: Sam Ruttyn
“That’s what’s happening a lot when you think it’s going to go well,” Mr White said. “Two out of four freeze up and don’t bid at all. It’s just an indication of the market.”
According to Mr White, he believes it is too soon to see a trend from buyers from this week’s budget announcement, but hopes the market may regain confidence.
“I think market’s like certainty, even if the certainty isn’t what they wanted to hear,” he said.
“I’m hoping the budget is out of the way and the rate rise has come, people know what they are moving forward on.
“But there’s no doubt it’s a low confidence market and buyers are tentative on price, vendors are sometimes a little bit high.”
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Auctioneer Clarence White. Picture: Sam Ruttyn
Listed via Alexander Phillips and Kenji Fukushima of PPD Real Estate, the home sold post-auction for $9.3885m, following negotiations with the highest bidder. Although it did not meet its original reserve price of $9.6m.
Mr Phillips said there was a bit of backwards and forwards and the final result took about half an hour following the auction.
“We thought everyone would be a bit more buoyant in their bidding, but everyone was a little bit reserved,” he said.
“We had a really strong record sale Friday night on Murriverie Road, North Bondi which you can see the house in the backyard for $13.3m, which we thought would actually edge the buyers on a bit.”
61 Clyde Street, North Bondi
He added that the best offer pre-auction was $9.075m. “So it was a good result in the end,” he said.
Mr Phillips said the auction offered a good indication of the current market at the moment being “flat”.
“There’s buyers out there, but you need to work with them and vendors need to be more realistic,” he said.
“But it’s a best buying market for buyers to get into.
“Now’s the time to be buying.
“Its dropped five per cent to 10%, but it’s now levelled out and now would be the time to get in before you see a potential change in the market.”
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8 Margaret Street, Ashfield
In the Inner West, 8 Margaret Street, Ashfield sold under the hammer for $1.875m clearing its $1.775m guide.
With four registered bidders and all active, lead agent Michael Simpson of Ray White Ashfield said it was strong competition from owner occupiers.
He noted that investor activity had sharply declined following recent budget announcements. “Investors all dropped off – every single one of them after the budget changes,” he said.
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In Western Sydney, a three-bedroom St Mary’s house sold for $1.95m, clearing its $1.9m reserve.
With seven registered bidders and two active, the interest for 44 King Street was predominantly from investors for the location.
Lead agent Amber Boumelhem of Ray White United said it was looking uncertain pre-auction and thought the home was going to be passed in following the budget on Tuesday.
“A lot of our investors pulled out,” she said.