22 Ocean Road, Manly - The only property in Sydney to sell in our investigations up at in Sydney. Nice view!

As we have been up in Sydney recently we thought it might be an opportune time to bring you some news North of the border.

A couple of key difference’s when buying property up in Sydney:  Not all prestige property is auctioned with auctions representing approximately  50% of transactions. When at Auction you have to register prior and bid with a bidding card, only one Vendor bid is permitted, Auctions are held inside properties, in board rooms and public venues such as RSL’s and pubs.

The Sydney prestige market is also substantially larger than Melbourne with approximately 60 Suburbs with a median value over the million mark whilst Melbourne has approximately 20 suburbs.  In fact it’s arguable that the prestige market in Sydney is really $2 million plus.

There are also a number of factor’s that play a huge role in Sydney that only exist on a few properties in Melbourne like absolute water frontage, proximity to ocean/bay, significant slope considerations and different types of views (Ocean, Bay, Harbour, City, Neighbourhood).

In the last few weeks we have visited 9 Auctions predominately in the Northern coastal suburbs of Sydney including;  Mosman, Manly, Fairlight, Balgowlah, Willoughby, Cammeray, Cremorne & Seaforth. All the auctions we attended were $1.5 million plus and surprisingly 8 out of 9 passed in. Crowd numbers were around 13 people per auction and things seem a lot more dire up in Sydney than they do in Melbourne.

The pass ins were in alignment with a recent Australian Property Monitors report which indicated that the average marketing time for Sydney prestige property has double from 85 days to 173 days. This is a dramatic increase when you look at the 6 week average turnaround time for prestige Melbourne property.

Lachlan Campbell of LJ Hooker Manly has indicated it’s a mixed market at the moment with a shortage of quality homes and an oversupply of prestige apartments.  Mr Campbell added that quality homes between $2 –$5 million are rarely coming onto the market in the Manly area and as such demand is exceptionally high. Mr Campbell said “on the whole the median price in Manly is fast approaching $2 million due to the demand for house and land” and “it couldn’t be more the opposite with quality apartments as there is an oversupply and falling prices”

Prices for prestige apartments in the Manly area have fallen by approximately 10% – 15% according to Mr Campbell.  It is not surprising then that the most common form of sale for apartments $2 million plus is private sale whilst houses $2 million plus are all being register for Auction (unless sold prior)

Nick Broadhurst of Knight Frank has indicated that the Sydney market has definitely softened in the last few months. Mr Broadhurst who predominately works in the $5 million plus Sydney market said “it is quite hard to attribute the slowdown to any one factor with the Europe debt crisis, increasing interest rates , currency & share market volatility all having some affect”. Mr Broadhurst added that quality properties with unique attributes were still performing well and the most common form of sale for property under $10M is still auction.

Indoor auctions and an average of 13 people in attendance.... hmmmm very different to how things are done in Melbourne.

Below is a summary of the auction we attended, Bidderman is at .2 – Yes that is right of the 9 auctions we attended there was 2 bidders in total. Obviously we have not captured a large proportion of the market so the bidderman statistic can not be used with the same conviction as the Melbourne bidderman, none the less it is a very surprising result. In addition and as previously mention crowd numbers are exceptionally low in comparison to Melbourne, the most that attended any one auction was 25 people and there was an average of 13 people at each auction.

15 Ellalong Street, Cremorne

Interested neighbours, agents and buyers entered this immaculate property as twilight brought more rain. While shoes were left at the door, feet were soon warmed by the under floor heating. High standards and quality living were clear in the eyes of all inspecting. Hugh Rainger of McGrath Real Estate urged the crowd forward before delivering a healthy introduction, detailing the property’s exceptional characteristics to satisfy any buyer’s remorse from potential bidders. The opening offer of $2,100,000 could have been a clever ploy or seen as insulting, Mr Rainger preferred the later and quickly disregarded it. A vendor bid was required to raise the bar to $3,150,000 and then the auction fell silent. Property passed in $3,150,000, no further bidding.

15 Vista Avenue, Balgowlah Heights

This was the first opportunity to purchase this property in 31 years and long term owners had kept pace with style to present a beautifully modern family home. Offers under the reserve had been received during the week encouraging a competitive auction and sale. Glen Wirth’s of Richardson and Wrench surprise was clear when he started the proceedings to a crowd of 8 people. It was clear no-one present was ready to bid and the call for opening offer fell on deaf ears. The vendor opened the bidding with the highest offer received during the week at $1,950,000. Mr Wirth followed Auction protocol in the hope bidders were late or hiding. This auction Passed in duly with Agents scratching heads and preparing for a week of negotiations.

33 Lucknow Street, Willoughby

This private oasis cleverly set behind a plain and leafy entrance was a pleasant surprise for all – agents, nosy neighbours and interested parties alike. Yet this spaciously quirky family home complete with an enormous home office, cottage garden and hot tub delivered another auction non-event. Hugh Rainger of McGrath Real Estate delivered a concise and compelling introduction to the property, though as expected by the agents, no bites from the crowd. With no registered bidders, the home was passed in with the vendor bid of $1,795,000, though expected to sell in the next couple of weeks when the market lifts according to McGrath Real Estate.

22 Ocean Road, Manly

Despite the drizzly weather, a buzz of interest for this superbly located property drew a curious crowd of 25. Yet with three registered bidders it was clear only one was there to do business on the day. Brad Cole of LJ Hooker opened the auction confidently with a formal and fast introduction that fell quickly into silence from the crowd. Mr Cole crackled a few jokes and after a slow start the warm humming of the gas fired place soon lit the first bid of $1,800,000 from the lady intent on buying. Mr Cole highlighted that the property was worth far more with the semi next door selling recently for $2,500,000. The confident bidder then retorted that was the sunny side! A long stall and some more jokes forced the vendor to bid $2,050,000. The same bidder lifted hers to meet the $2,075,000 and after more conferring with the vendor was raised again to $2,100,000, which finally brought the hammer down. Clearly the desire to own this property outweighed financial concern as a more astute bidder could have exchanged for less by letting the property pass in. Exchanged under Reserve.

2 Cabban Street, Mosman - no registered bidders, no actual bidders and not surprisingly no real auction.

2 Cabban Street, Mosman

The agents from McGrath Real Estate expected some bidders and it was with disappointment Simon Cotter informed the crowd that the property was to be removed from the Auction Market at the vendor’s request.  Mr Cotter advised that the reserve of $3 million has not been met by pre-auction offers and the Vendor was not in any rush and may decide to wait until Sydney’s high end market ignites again.

2 The Boulevarde, Cammeray

The rain made no apology for dampening the ground and Auctioneer Hugh Rainger of McGrath Real Estate found it hard to excuse buyers who watched this hidden gem silently pass in. With a reserve of $1,500,000 and one seriously interested party sitting quiet on offer of $1,350,000, the early pass in opened opportunity for negotiations behind closed doors. A little rough around the edges, this home displayed amazing potential with expansive cottage gardens, character filled stained glass windows and detailed ceilings. Most of all, the glass living space with the magical rainforest vista will guarantee a surprise if this property is still listed next weekend.

34 Grandview Grove, Seaforth

The welcoming entrance, sprawling layout and tranquil lifestyle offered by this property deserved a grander auction. Despite no registered bidders, Auctioneer Glen Wirth’s best efforts to seduce the crowds interest did not ease to the hesitant state of the Sydney’s high end over the last few weeks. A vendor bid of $2,150,000 opened the bidding with hope of encouraging interest. “A fair price”, Mr Wirth pointed out given good company of higher price tags in the neighbourhood. A number of quietly interested buyers present did not choose to play the bidding game and appeared happy to satisfy agent confidence of a sale behind closed doors.

The boys from McGrath Real Estate in action trying to sell 34 Grandview Grove, Seaforth.

2/59 Lauderdale Avenue, Fairlight

There were two bidding cards issued at this auction and it felt for a moment that this auction could have a positive result. This simple modern unit pleased the eye to all present but did not satisfy registered bidders requirements once an opening vendor bid of $2,700,000 was placed. The Auctioneer Simon Cotter of McGrath Real Estate highlighted obvious features of this 3-bedder designed by Ian Moore however this did not resiniate with the registered bidders and thus an opening vendor bid of $2,700,000 was placed and the property subsequently passed in.

2/101 Bower Street, Manly

This was the 3rd auction outing for this property and it received the same result – Auction Dismissed. All attending shared curiosity and appreciation of the sun drenched view of Shelly beach but no serious intent to bid. Mr. Hennessy representing LJ Hooker kindly discussed reasons for no auction, highlighted options and stating law that Auction conditions remain until midnight tonight – Interested bidders should be wary of opening Vendor bid of 3,300,000. Reduced from $4m Reserve at last Auction attempt, time may see this property drop price again.