Last sold 20 years ago, Balmain one-bedder with seven registered bidders sells for $69k over the price guide
A one-bedroom apartment in Sydney’s Balmain sold for $69,000 above its price guide of $610,000 at auction on Saturday, with seven bidders registering for the sought-after property, which last sold 20 years ago.
The winning bid was called at $679,000 – less than half of Balmain’s median unit price, which currently sits at $1.385 million, according to the most recent Domain House Price Report.
The resounding success of the auction shows that, despite low clearance rates and back-to-back rate hikes, well-priced properties are still selling – and selling well – despite uncertainty in the market.
Sydney recorded a clearance rate of 52 per cent, while Melbourne fared slightly better at 59 per cent, but both cities were well below the 68 per cent recorded in the same week last year.
Belle Property Balmain, who sold the one-bedroom apartment at 1/40 Arthur Street, Balmain, ran four auctions on Saturday, selling three. At the top end, 59a Ballast Point Road, Birchgrove, sold for $3.8 million.
This weekend’s auction results were the first test of the market after the federal budget was announced last Tuesday, which unveiled proposed changes to negative gearing and capital gains tax discounts, largely affecting property investors.
Agent Linsey Kemp, who sold 1/40 Arthur Street, Balmain, to owner-occupiers, says she has not yet seen budget anxiety translate into softness.
“Most people buying here are owner-occupiers, or expats buying with the view to come back and live in the property – so not many investors,” she says.
“But I think there will certainly be some impact. Vendors need to be realistic with their expectations and keep their agent close and listen to the market feedback.”
Ray White chief economist Nerida Conisbee says the federal budget’s changes to tax settings around negative gearing and capital gains tax were significant enough to introduce real uncertainty for buyers, sellers and investors.
Open home attendance nationally fell to 2.1 attendees per property last week, down from 2.5 the week prior and well below 3.4 at the same time last year, according to Ray White.
“This suggests that some buyers are stepping back, at least temporarily, as they assess the impact of recent policy changes,” Conisbee says.
“The next few weeks will be important in determining whether this is a short-term pause or the beginning of a more sustained adjustment in demand.”
Given the general uncertainty, Matthew Marshall of Belle Property Mentone was delighted with the result of the auction of 73 Laura Street, Aspendale, in Melbourne’s south.
Young couples competed for the modest two-bedroom cottage on a 380-square-metre corner block.
The home, which is an easy walk from the beach and the station, eventually sold for $1 million, well above its $880,000 reserve.
Marshall has now sold the home four times — including during the pandemic for $892,000 — and says the weekend’s result confirms the power of an affordable, well-located property.
“I think it just shows the strength of the market under $1 million anywhere in Melbourne,” Marshall says.
“If you have well-priced properties in that zone and they offer good things, people will flock to them.”
The bidders for Laura Street were aspiring owner-occupiers, but investors, says Marshall, are currently “few and far between”.
“It’s early days and I don’t think we can get a real sense of whether investors are fleeing or whether they’re still in the market,” he says.
“I think everyone’s trying to work out what the budget means to them in real terms.”
While many properties were sold under the hammer over the weekend, an increasing proportion of auctions were postponed, with vendors choosing to keep their homes on the market for slightly longer and waiting for the right buyer, or negotiating a sale privately.
Candice Cattell from Stone Real Estate Manly had several auctions postponed over the weekend, but those were due to negotiations rather than vendor nerves.
“An auction date is often just a deadline,” she says.
“If I’m coming up to the date and there isn’t enough competition to go to auction, then I’ll give it a bit more time. The days on market are slightly longer now, and it’s simply not a heated auction market in my area.
“Manly is always a sought-after area and despite all the external influences including the budget announcements and world conflicts, the right properties at the right price are still selling – and selling well.”
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