Clovelly house sells for $3.63 million to last-minute buyer

Clovelly house sells for $3.63 million to last-minute buyer,The man arrived at the auction late, before outbidding first home buyers and investors with a single offer.

Clovelly house sells for $3.63 million to last-minute buyer

A Victorian villa with ocean views in Clovelly sold for $3.63 million on Saturday, to a local man who almost missed the auction.

The upgrader, who mixed up the time of the auction by half an hour, turned up to 16 Seaview Street in the last minutes of the bidding and made a single offer right before the hammer fell.

He was one of 10 registered bidders on the freestanding three-bedroom house, which was built in the 1890s and was on the market for the first time in more than 60 years.

It was one of 655 homes scheduled to go under the hammer in Sydney on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 73.2 per cent from 429 reported results, while 77 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The Clovelly property had an initial price guide of $3 million, which was lifted to $3.2 million after buyer feedback throughout the campaign.

The auction started well below that price, at $2.6 million, after the auctioneer called out several times for an opening offer. It set the tone for the auction as five buyers, including a first home buyer and local investors, cautiously placed bids.

The first home buyers were knocked out of the race at $3,605,000 and investors then placed what seemed to be a winning bid of $3.61 million, well above the $3.4 million reserve.

A Clovelly man turned up in the final minutes of the auction to bid.Credit:Peter Rae

But a Clovelly man arrived just moments later, realising he had mixed up the auction start time, and asked to register to place a bid of $20,000, taking the price to $3.63 million, at which point the investors yelled out “it’s unfair!”

That additional bid was enough to push the investors out of the competition. Late bidder registration is permitted in NSW.

Clovelly couple Karen Burt and Ralph David, who also bid in the hope of upgrading, thought the successful buyer bought well.

Dozens turned up to watch the house go under the hammer for the first time in decades.Credit:Peter Rae

“It went under its value, actually … if we had a bit more we probably would have kept going. For that [house] going for [that price], it’s a fairly soft market,” Burt said.

“Its potential is huge. If you do the work, it would make $7 [million] to $8 million with the right development on it,” David said.

Ray White Eastern Suburbs’ Nicholas Wise said the buyer picked up the property for less than it would have cost during the boom.

The home was guided at $3.2 million, up from $3 million at the start of the campaign.Credit:Peter Rae

“Without a doubt the market has come back since 2021 … if it sold two years ago it would have sold at a higher price,” Wise said.

He said increased building costs were another factor for buyers’ budgets when bidding on homes in need of work.

The property sold for a fraction of the price of a nearby oceanfront home, which sold to celebrity radio host Jackie O for $13.25 million at auction last weekend.

Clovelly’s median house price fell 17.6 per cent to $3,675,000 in 2022, on Domain data.

Meanwhile, in Balmain, an older couple who lived in a nearby apartment bought 33 Stephen Street for $2.82 million.

They were among four registered bidders – competing against an investor and two downsizers – on the 1872 sandstone cottage, which was guided at $2.5 million. The reserve was $2.8 million.

Selling agent Brandon Nguyen of BresicWhitney Balmain said the result was above what the neighbouring property sold for last year.

“I sold 31 Stephen for $2.3 million in October … that was smaller internally but the same land size. [The market] definitely feels better than in October,” Nguyen said, noting that prices were being supported by a lack of homes for sale.

Balmain’s median house price rose 2 per cent to $2,449,000 in 2022.

In Bondi, a semi-detached house at 32 Watson Street sold for $2.63 million to a local family looking to upgrade.

The six-bedroom house had an initial price guide of $2.75 million, which was later dropped to $2.5 million.

Four of the five registered bidders competed after an opening offer of $2.25 million.

The initial reserve of $2.6 million was reduced to $2.42 million, but the home sold above both in the end.

McGrath Double Bay’s James Ledgerwood said the price was “spot on” for the market and noted that buyers were still looking for “fair value”.

In Stanmore, a three-bedroom Federation house at 49 Percival Road sold for $2.01 million to a young couple upgrading from Summer Hill.

They were among five registered buyers – a mix of first home buyers and downsizers. The home was guided at $1.7 million and the reserve was $1.9 million.

Adrian William’s Jason Ballo said it was an “outstanding result” as the price was higher than that achieved for a similar-sized home in November.

“Buyers are searching far and wide to find a house [due to lower stock levels], and they are extending themselves,” Ballo said. “Buyers are going pretty gung-ho, although buyers say ‘we don’t want to spend this much’, that goes out the window and they bid aggressively.”

Stanmore’s median house price slid 3.5 per cent to $2,027,500 in 2022.