How did an unliveable, run-down Surry Hills terrace sell for $1.645 million at auction?

An unliveable, two-storey terrace in Surry Hills, with plaster peeling off the walls and exposed ceilings, has sold at auction for $1.645 million.

The dilapidated home at 13 Chapman Street attracted nine registered bidders, who could see the potential in the run down property, located in a quiet, cul-de-sac, in the inner city suburb.

The terrace was one of 2387 homes that went to auction in capital cities across the country last week, up 13 per cent on the week prior to be the fifth busiest week for auctions so far this year.

Listing agent Nicholas Murray from Murray Property Paddington said just two bidders got the opportunity to raise their hand during the competitive auction, with both bidders hoping to renovate and move in.

“It was a pretty remarkable price given the condition of the property. There’s not much there. Someone had been living there and it just got very dilapidated,” he said.

Mr Murray said the successful bidders had been house hunting for some time before securing the Surry Hills home.

“They are a young couple, looking to renovate and add value to the home. They had been to five auctions and missed out on all of them before today,” he said.

Mr Murray said stock levels were currently tight in the area but he expected an increase in listings in the coming weeks.

“There’s not a lot of stock on the market right now but there is more coming on and we know everyone is interested in what the market is doing. We had about 50 or 60 people watching on at the auction today. So, there’s definitely interest there,” he said.

The renovator’s delight was one of 864 homes that went to auction in Sydney last week, well up on the 776 auctions held the previous week but significantly lower than at the same time last year when 927 homes went under the hammer, according to CoreLogic.

On Sunday, CoreLogic recorded a preliminary auction clearance rate for Sydney of 70.6 per cent from 637 reported results, down from 73.2 per cent the previous week, which fell to 65.9 per cent, once finalised. This time last year Sydney’s auction clearance rate was slightly higher at 67.3 per cent.

More on the market

CoreLogic research director Tim Lawless said there were 11.3 per cent more auctions held in Sydney compared to a week earlier and that the number of auctions in Sydney would exceed 1000 per week over the next two weeks.

“Around 1050 auctions are scheduled for next week, rising to around 1250 the week after,” he said.

In inner Brisbane, the vendors of a renovated 1930s art deco cottage, sold their Ashgrove home for almost $800,000 more than what they bought it for just eight years earlier.

The charming two-bedroom home with high, ornate ceilings and polished floorboards sold for $1.47 million on Saturday, with four bidders hoping to secure the keys to 11 Boon Street, which last sold in 2016 for $675,000.

Listing agent Judi O’Dea from Ray White Paddington said it was only the third time the beautifully renovated home had been listed for sale.

“We had four registered bidders and three of them were active during the auction,” Ms O’Dea said.

She said the auction kicked off with an opening bid of $1.2 million, which was placed by an investor.

“It was very competitive, and we had a real mix of buyers, from an investor, to downsizers to a young couple,” she said.

“Art deco homes are very rare in this area and this particular home has had very few owners, so the interest was very strong,” she said.

The home, which features the original light fittings, leadlight and bay windows and is located on a generous block, sold to young owner-occupiers from a nearby suburb.

“A young couple from Tennerife, who just sold over there, were the successful buyers. They had really fallen in love with the idea of living in an art deco home and fell in love with this place,” she said.

The couple outbid another young couple from nearby Toowong, some downsizers who were hoping to move closer to family and the investor.

Caution has crept in

Ms O’Dea said despite Saturday’s strong auction result “some caution has crept into the local market.”

“We’ve been selling well at auction over the last few weeks, but we’re probably not seeing as many buyers racing at us,” she said.

“I’m not sure that the caution is necessary. We’ve got some really nice properties coming on to the market which actually present some good opportunities for buyers who are prepared to come along to auctions and are ready to bid,” she said.

The popular home was one of 172 homes that went to auction in Brisbane last week, up from 149 the previous week and the same number of auctions held at the same time last year, according to CoreLogic.

On Sunday, CoreLogic recorded a preliminary auction clearance rate for Brisbane of 64.3 per cent from 126 reported results, up from 62.1 per cent the previous week, which fell to 56.8 per cent, once finalised. This time last year the auction clearance rate in Brisbane was 62.2 per cent.

Bidders out

In Pascoe Vale, in Melbourne’s inner north, six bidders pushed the price of a three-bedroom, art deco home with impressive native gardens, well above its listing price of $1.1 million to $1.2 million.

The majority of bidders vying for the spacious home at 6 Ann Street were young professional couples. But it was a downsizer couple who made the winning bid of $1.385 million.

Listing agent Ian Dempsey from Ray White Preston said that ironically, he had sold the successful bidders’ previous home just last week.

Meanwhile, the vendors plan to make a tree change.

“The seller had lived there for a long time, around 30 years, and they are moving to Castlemaine,” Mr Dempsey said.

The home was one of 1114 homes that went to auction in Melbourne last week, up from 974 the previous week and 982 at the same time last year, according to CoreLogic.

On Sunday, CoreLogic recorded a preliminary auction clearance rate for Melbourne of 68.5 per cent from 815 reported results, down from 71.1 per cent the previous week, which fell to 60.9 per cent, once finalised. This time last year Melbourne’s auction clearance rate was 63.3 per cent.

Mr Lawless said Melbourne hosted the most auctions of any capital city and the highest auction count since the week leading into Easter when 1760 auctions were held.

“Around 1300 auctions are scheduled for the coming week across Melbourne,” he said.

Crowds but no bids

In Echuca, on Victoria’s border with New South Wales and less than 100 kilometres north of Bendigo, a character-filled, three-bedroom period residence was passed in on a vendor’s bid of $900,000.

Despite more than 40 people turning up to watch the well-known home, called ‘St Heliers’, go under the hammer, not one person placed a bid.

The vendors have been using the period home, built in circa 1915 and situated on a large parcel of land with an outdoor pool, as a holiday home.

“We had quite a bit of interest during the campaign, and we are confident we will sell it,” said listing agent Cate Jorgensen from Nutrien Harcourts Echuca.

The unique property at 221 McKinlay Street will now be listed for private sale.

“Most of the people who have shown interest are looking at it to live in as their personal home,” she said.

Doubled in value

In Adelaide’s inner north west, a three-bedroom heritage home has more than doubled in value in just over a decade, selling under the hammer for $972,000.

The impressive price growth for the art deco home at 65 Botting Street, Albert Park, which last sold in 2013 for $443,000, reflects the strength in the Adelaide property market in recent years.

In fact, earlier this month CoreLogic reported that for the first time in the 40 years it has been recording median dwelling values, Adelaide has recorded a higher median than Melbourne.

Lead agent Nick Psarros from Ray White Port Adelaide said a depth of buyers contributed to the strong selling price.

The art deco home attracted the attention of nine registered bidders, with five of them placing a bid during Saturday’s competitive auction.

“The sellers had bought a bigger home in another suburb. They bought this home 10 years ago, but they have a growing family and needed to upsize,” Mr Psarros said.

“It had beautiful character and a lovely garden with a big established tree out the back,” he said.

While the vendors had outgrown the home, the property, which features a paved outdoor entertaining area and expansive lawns and gardens was just the right size for the new owners.

“The winning bid went to a couple who had just sold their house locally, and were upsizing,” Mr Psarros said.

The home was one of 153 homes that went to auction across Adelaide last week, slightly up from 148 the previous week and 119 at the same time last year, according to CoreLogic.

On Sunday, CoreLogic recorded a preliminary auction clearance rate for Adelaide of 82.2 per cent from 73 reported results, down from 80 per cent the previous week, which fell to 77 per cent, once finalised. This time last year Adelaide’s auction clearance rate was 73.9 per cent.

One bidder

In City Beach in Perth, a luxury five-bedroom, three-bathroom home with sweeping ocean views, was passed in on Saturday morning for $4.15 million.

Despite several parties showing interest during the campaign, just one potential buyer placed a bid during Saturday’s auction, which failed to reach the vendors’ reserve.

The stunning beachside home at 8 Aruma Way last sold in October 2020 for $1.963 million and has undergone a dramatic transformation since.

Listing agent Vivien Yap from Ray White Dalkeith/Claremont said she was speaking to at least three interested parties and hoped to sell the two-level home, which also features a gymnasium and outdoor pool, in the coming week.

Ms Yap said there was “pretty good” depth in the high-end Perth property market, but buyers were discerning.

“A lot of buyers at this end of the market are fussy and if a home isn’t absolutely perfect, they just won’t come forward,” she said.

The home was one of 15 homes that went to auction across Perth last week, slightly up from 13 the previous week, according to CoreLogic.

Perth continues to be a small auction market with most homes sold by private sale and continues to lead price growth across all capital cities. In August, Perth’s monthly home value growth increased by 2 per cent, according to CoreLogic. While annual home value growth across the city has risen 24.4 per cent.

Mr Lawless said the steady rise in capital city auctions would continue over the next two weeks.

“With 2,387 auctions held over the week, this was the busiest week for homes going under the hammer since the week prior to Easter when 3,519 auctions were held,” he said.

Auctions to rise

“The number of auctions scheduled for next week is set to rise further, with around 2,800 auctions currently scheduled, before dropping back the week after due to the AFL grand final long weekend,” he said.

Meanwhile, Mr Lawless said an increase in new listings across the board was good news for buyers.

“More broadly, CoreLogic is reporting a higher than average flow of new listings coming to market. The four weeks ending September 8 saw almost 41,000 freshly advertised properties listed for sale, five per cent higher than at the same time last year and 17 per cent above the previous five-year average,” he said.

“The rise in advertised stock levels is great news for buyers, who benefit from more choice, but sellers will need to be aware of the heightened competition, where advertised supply levels are likely to rise further through spring and early summer,” he said.