A dilapidated terrace with boarded up doors, holes in the roof and frayed walls has sold for over $3.8 million.
The historic terrace on Palmer St in Darlinghurst was being sold off by the NSW Housing Department and was uninhabitable.
It opened to a bid of $2.3 million which auctioneer Thomas McGlynn described as “cheap and cheerful”.
Sixteen bidders registered for the auction but only five competed, pushing the price to $3,813,000.
Once bidding started it came in thick and fast. There were numerous $200,000 increases and the bidding only began to slow at the $3.5 million mark.
Selling agent Maclay Longhurst of BresicWhitney said it was always going to be a strong auction because of the opportunity to add value. “These (terraces) are very rare,” he said prior to the auction.
The bidders appeared reluctant to back down even as the price began to soar, with Mr McGlynn commenting during the auction that it was like a “title fight”.
The auctioneer could not disclose the reserve but said it had been hard to predict how high the bidding would go prior to the auction.
“Some of the renovated terraces in the area are selling for $6 million … it’s a popular location.”
The sale capped off an eventful start to the spring selling season. There were close to 600 auctions scheduled for the week, a lower volume for this time of the year, but a high rate of sales.
Ray White NSW chief auctioneer Alex Pattaro said homes sold at auction were getting better prices than those sold in pre-auction deals.
“There are plenty of properties transacting, with the market providing future sellers with opportunities to sell and re-enter the market,” he said.
“Bidding activity remains strong and we have right now 11 bidders on average across the state’s auctions.”
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