242 Edgeware Road Newtown
When all it takes is a $500 bid!
The property
242 Edgeware Road Newtown is a single level, 2 bedroom, 1 bathroom semi detached house with a car space and rear lane access. The land size is 164.4 sqm and the property faces onto a busy road. The internal size is 125sqm. The home sits within a stones throw of the Marrickville Metro shopping centre.
The property needed some TLC. Nothing major, but definitely some love. Most people would probably agree with a lick of paint you could move in and then renovate and improve while you lived there. At minimum you would need to paint and clean up some mould before putting a tenant in.
Two small bedrooms and the shower was not configured with a door to close it off. Effectively, anyone walking down the hall way was able to check out who was in the shower!
In the current state, being a semi detached with a low ceiling, the property did not ooze natural light. Nothing a couple of sky lights couldn’t fix.
The potential to renovate and/or extend upwards was reflected in a number of trade’s / builders at the auction.
The location had pros and cons. On the plus side, a 2 minute walk to Marrickville Metro (5 minutes to the newly renovated section), a 12 minute walk to St Peters station, and a 10 minute walk up to Enmore road shops or King St Newtown. However, it does face a busy road, and also a section of the road where many cars stop to turn into the Metro shops. It was noisy inside and the main bedroom faces the street.
The address itself, # 242, may also have deterred some buyers as the number 4 is believed to be bad feng shui.
Reportedly, the property last sold in February 1997 for $175,000. To take you back, John Howard had only been PM for a year at that time!
The sales campaign
The property came to market with a guide of $1,100,000 mid June 2023. The auction was scheduled for 15 July 2023. It was presented for sale by the quality team of Bresic Whitney agents, Frederico Frago-Matos and Nick Playfair.
The timing here is key. Until 30 June 2023, First Home Buyers could elect to pay an annual property tax instead of the upfront stamp duty - but only on properties up to $1,500,000. It was expected among many property analysts that buyer demand for properties, especially houses sub $1.5m would decline after 1 July. I am not privy to the details of why the vendors listed late June, however, the timing may suggest the sales campaign was confident in a result over $1.5m. There are also tax considerations to sell in one financial year over another, which may have played into the timing of the campaign.
The auction date, 15 July falls mid winter and the last Saturday of the NSW school holidays. All round, not a hot day or time in the property market. Albeit, stock levels remain at the lowest they have for quite some time.
In the last six months, Newtown has recorded 10 sales for 2 bedroom houses with parking, ranging from $1.2m to $2.150m. Another 32 houses with 2 bedrooms had sold in Newtown in the same time but without parking.
The Auction | ~8 registered bidders | 5 active bidders
A quick opening bid… followed by silence
Bresic Whitney auctioneer Thomas McGlynn was hosting the show and was welcomed with a quick opening bid bang on the price guide of $1,100,000. That felt like a good start. Unfortunately, it was followed by a minutes silence. Everyone waiting to see what everyone else would do.
Eventually the game is on
A little bit of pace picked up with $50,000 increments and bidders 1 and 2 played ball until $1.3m. Bidder 3, a young couple with an Irish accent entered the race.
Somewhere around the $1,440,000 mark, Thomas announces “we are selling” - which is often agent speak for, the property has now passed the reserve and is ‘on the market’. At $1,475,000, I really felt the young Irish couple might have sealed the deal.
The illustrious late bidder ‘on the phone’
Almost out of no where, a man standing next to his friend or partner on the mobile, enters the bidding at $1,480,000. It was a good time to join. You could almost hear the shamrock fall from the stem and hit the floor.
Clearly $1.5m was not a point either the Irish couple or the late to enter gents were keen to hit. Between Thomas and the lead selling agent Frederico Fraga-Matos, they worked them both well. They crept up in slow $5,000 increments. They take it to $1,510,000.
Old mate on the phone goes for a minor $1,000 bid. A flurry of $1,000 bids take it to $1,515,000.
The Irish couple are not going down without a fight, and ask the auctioneer to spot them $500 to take a bid to $1,515,500. I’m not 100% sure the auctioneer realised he was in for the $500 personally! As they find themselves in second position again for the umpteenth time in the auction, they tell the auctioneer to give the keys to the other party :-( .
The two men bidding for someone on the phone take it away. SOLD for $1,516,000.
What this result says about the market
It was a good result in a relatively neutral market. The property was nothing amazing, and while it has potential, needs some love. You can never change the busy road location. The most interesting reflection for the market, is how strong the demand remains in the sub $1.5m bucket with the first home buyer annual tax removed.