Developer pays $1.5 million over reserve for rundown Granville house

The house at 33 William Street, Granville, which is zoned R4 for apartments, sold for $2,781,000. Photo: domain杭州夜网m.auVIDEO: Woollahra cottage sells at first sight for $1.76 million

Frenzied bidding between six developers resulted in an unrenovated Granville house selling $1.53 million over reserve at auction on Saturday morning.

The house, which sold for $2,781,000, stands at the front boundary of a 1440-square-metre block at 33 Williams Street adjoining the Granville Diggers Club.

It was sold by an elderly woman – who had lived in the home for more than 60 years – and her grandson.

It was one of 715 homes scheduled to go under the hammer on what was the busiest July auction day on record.

By Saturday evening, Domain Group had collected 553 results and put the clearance rate at 79.7 per cent, the lowest rate recorded this year.

“The market is creaking under record winter listings,” said Domain’s senior economist, Dr Andrew Wilson.

Twenty five developers registered to bid on the Granville property, which is zoned R4 for apartments under Parramatta council’s codes.

Selling agent Tony Eltakchi of LJ Hooker Granville said the owners had, until recently, been unaware their land had been rezoned.

After the hammer fell the pair were close to tears. They said the result had changed their lives. Soon after, they drove off in their car. “They were off to Picton to buy a new house,” said Mr Eltakchi.   */]]>

House prices in Granville have surged by 34.2 per cent in the past year, making it one of the city’s fastest growing suburbs.

Even so, the sale price of 33 William Street was more than three times the suburb’s median of $768,500.

Asked whether he thought the huge disparity between his price guide of “more than $1 million” and the sale price could be construed as underquoting Mr Eltakchi said no-one knows exactly what can be built on the block.

“There’s a very large easement in the backyard so it’s not known what can and can’t be built on the block or the floor-space ratio,” he said. “But someone must have done their homework.”

The bidding opened at $900,000 and when the property was called on the market at $1.25 million by auctioneer Rob Trovato of Auctions Services, the bidding “went into a frenzy”, said Mr Eltakchi.

He had earlier approached the owner of the house next door to see if they wanted to sell but was told not yet.

“He wants to sit and wait in the box seat,” said Mr Eltakchi.

Parramatta City Council is in the middle of an apartment building boom with $8 billion worth of development in the pipeline.

At the start of the year the council announced it intended to double the size of the Parramatta CBD in 10 years and create a rival to the Sydney CBD.

This duplex at 10 Bruce Avenue, Manly, sold for $4.55 million on Saturday. Photo: Craig Bryant

One of the highest sales of the day was a waterfront duplex in Manly. It sold under the hammer for its reserve of $4.55 million.

The buyers are an ex-pat couple living in Manila. The wife flew in on Wednesday to inspect the property; her husband, an IT professional arrived on Friday.

Selling agent, Cherie Humel of Clarke & Humel had three registered bidders. She said the buyers will rent it out for about $2500 a week before returning to Sydney.

A house at 46 Thurlow Street, Redfern, sold for $1.9 million on Saturday – $100,000 over reserve.

In other auctions, a four-bedroom house at 46 Thurlow Street, Redfern, was hot property, going for $1.9 million – $100,000 over its reserve through Ray White Surry Hills.

The couple who bought it were “chuffed”. “We can’t believe we got it under $2 million,” IT manager James Sillence said.

There were 10 registered to bid but the buyer’s agent acting for the couple blew away the opposition with the $1.9 million opening bid.

As an indication of how much stronger the market is this year than last year, the same home was listed for sale at $1.9 million last September and then discounted down to $1.7 million before being withdrawn from sale.

This house at 13 Edna Street, Lilyfield, sold for $1.4 million – $300,000 over reserve. Photo: domain杭州夜网

In Lilyfield, fast bidding took the sale price for a two-bedroom semi $300,000 over reserve. A couple from Newtown beat four other parties paying $1.4 million for the Victorian house with city views. It last traded for $840,000 in 2010.

Selling agent, Simon Pilcher of Pilcher Residential said the Lilyfield market has been “on fire” for the past 12 months with the suburb record being broken five times since October.

The buyers of the semi at 13 Edna Street had been searching for seven months and had missed out on multiple homes.

This house 7 Merton Street, Zetland, sold for $1.5 million on Saturday.

At Zetland, the rare offering of a partly renovated Victorian house in a suburb surrounded by new developments had two buyers take its sale price $254,000 over reserve.

The buyer, a grandmother who has been a Zetland resident for 10 years, paid $1,504,000 for the two-bedroom house with a car space at 7 Merton Street.

She plans to rent it before renovating and adding a second storey and moving in.

David Bettini of Martin Property Agents said it was a “cracker result.”

“The big plus there is the location,” said Mr Bettini. “It’s close to the new East Village shopping centre and to Green Square town centre with the library and Aquatic Centre coming soon. The whole area is just fantastic.”

With Stephen Nicholls