WOW! What an auction to have witnessed today. If you missed it, here is the run down...and I've included the video at the end!

The property

3/32 Mount St Coogee is a 2 bedroom unit. Nothing more, nothing less. It has 1 bathroom, the sunroom shown as a 'study', a garage and space to park a 2nd small car. It also has a 'stoarge' room, (think kids play area) downstairs in the basement - not a space the Council would ever approve to be a bedroom. It was renovated for sale - so renovated, but in a cheap, quick kind of way. It doesn't have a balcony or any outdoor area on title. It is positioned on a busy street corner, and an 11min walk down to Coogee Beach.

Price Guide

The price guide was set at $1,050,000 and did not change throughout the campaign. A price guide, should reflect recent comparable sales and provide a benchmark as to the expected final sale price.
The most comparable sale in the last 6 months was 7/102 Dudley St, Coogee, a 2 bed + study, 1 bath, 1 car with no outdoor space. It sold for $1.250. $250,000 more than what the price guide was for 3/32 Mount St!
There was another property, inferior location, at 9/146 Oberon St Coogee that sold for $950k in Sept 2022. However, it is 47% smaller in size (62sqm vs 117sqm) and double the walk to the beach.
A guide of $1,050,000 in Coogee would usually attract people who have up to $1.2 or perhaps $1.3m to spend

3 32 Mount St Coogee registered bidders — **The registered bidders**

When you see a line up out the door, out the property and back onto the street - you know you are in for a crazy auction.
There was approximately 30 parties who registered to bid. That is about 50 people (factoring in couples) who spent the last 4 weeks:
Inspecting this property multiple times
Paying for a solicitor or conveyancer to review their contract and request changes
Reading the strata report
Talking to their mortgage broker about their pre approval
Losing sleep wondering what they should be prepared to pay
25 of these groups wasted a lot of time, thinking it may sell under $1.3m.
Majority of the bidders looked to be young people and couples in their 30’s and 40’s. There was also numerous Buyer’s Agents present, myself included.
During the week an interested party had asked for my advice on price - and when they told me their max budget was at $1.2 or maybe a tad over, I told them not to bother. No need to waste any more emotional or actual time on a property they were not going to be able to afford.

**The auction**

Damien Cooley was the auctioneer - one of the industry's most reputable and best auctioneer's. While a very talented auctioneer, this auction probably could have been called by a novice on their first ever day - Damien barely had to say a word about the property.
In addition to the 30 registered parties, the crowd for the auction was packed. Easily 100 people, probably closer to 150. Plus media and photographers. Passing cars were slowing just to avoid hitting people as we spilled onto the road.
In this current market (the one where the media tell you the property market is crashing), most auctions open around the guide price, give or take $50k.
Guide $1,050,000
Opening bid $1,350,000
You could hear the disappointing sighs of the crowd as most people realised the first bid had knocked them out.
In total, about 5 registered parties got to have a go. A go at buying a very average 2 bedroom apartment in Coogee for a large sum of money (of which there are over 3,500 in total!)

The result

A whole 90 seconds after the auction began, the price hit $1,500,000. This is an important point in the auction, because majority of the bidder's were first home buyer's and this is the price point at which they would lose access to the annual stamp duty tax. No need to worry about that though, because they weren't buying it at $1.50m.

The final bid - $1,520,000. SOLD.

The successful bidder was an Eastern Suburbs local.

That price is 44% higher than the price guide!

Was that the best use of $1,520,000 for a 2 bed apartment in Coogee? I'm not sure what requirements the buyer had, but overall, you could do better with that money in this market.

1/9 Glenwood Ave Coogee recently sold for $1.499 with a 2nd bathroom & a massive outdoor garden.
5/286 Arden St Coogee recently sold for $1.50 and is a 3 bed + study with balcony and a communal rooftop with beach views.

How do you avoid being one of the 29 people registered who went home confused at what they just witnessed?

Engaging an industry professional who buys property in this market every day, will make sure you are not wasting your time and energy on properties that you can't afford.

I offer a free 15-20min Buyer Consult if you are interested to find out more, click here to book.