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AU Sydney property on verge of double-digit growth

Property Here - Monday, October 07, 2013

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A property at 130 Camden St, Enmore sold for $1.41 million.

A property at 130 Camden St, Enmore sold for $1.41 million.

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THE LONG weekend saw Sydney listings take a similar drop to the federal election weekend almost a month prior, but the auction clearance rate remained strong.

Just 302 auction results were reported to RP Data, but these were hotly contested, returning a clearance rate of 80.1 per cent; Sydney's fifth straight week of 80 per cent or higher.

Melbourne returned to full form after resembling a ghost town during the previous weekend's AFL grand final; with a 71.4 per cent clearance rate from 865 scheduled auctions.

Adelaide was the only other notable performer with a clearance rate of 63.8 per cent; but, being more of a private treaty market, this result came from just 47 reported auctions.

Another strong week for Sydney saw home value growth of 0.8 per cent, which now adds up to 9.9 per cent for 2013, a whisker away from the double digit result that some analysts have been predicting. The year on year growth is now 7.9 per cent and ahead of other strong performers Perth (7.7 per cent) and Melbourne (5.4 per cent).

A Newtown investment property provided one vendor with a dream return, when it sold for $800,000 above reserve last week.

The block of four units at Denison St was sold under the hammer for $2.84 million, through Andre Frack and Jeremy Wiesner of Richardson & Wrench Bondi Junction.

The property attracted a frenzy of interest with 250 groups inspecting during its campaign and 30 bidders registering on the day. The opening bid put the $2 million reserve to bed immediately.

"As a long term hold, I think the buyer is going to do extremely well whether (they) keep the property as is or redevelop further," Mr Frack said.

The reserve had been based on a valuation of $500,000 per two-bedroom unit and a rental income set lower than the market rate.

"There was the added potential to make minor improvements to achieve a rent increase, or to add further value by increasing the floor space," Mr Wiesner said.

It's rare as hen's teeth to come across a property on almost 400 sqm of land in the inner west these days.

So rare, that one buyer paid more than $200, 000 above reserve to secure a house with a separate warehouse at 130 Camden St, Enmore.

"Most blocks are semis, so half that size," said Michael Xanthoudakis, from Richardson & Wrench, Newtown. "To have 390 sqm, that's still classified as a big sized block in the Newtown area."

A young family with small children ended up getting the better of eight other registered bidders on the night, securing the property for $1.410 million.

The big result gave the married, retired vendors an extra bonus, as they prepare to move into a retirement village.

"They were very happy," Mr Xanthoudakis said. "They set the reserve for $1.2 million, but would have taken less."