Hot Property for a Redfern Townhouse!
The client
A young couple had fallen in love with a spacious townhouse in the heart of Redfern. The only problem? They were going to be on the other side of the world on auction day. To ensure they had the best chance of securing the property, they reached out and asked if I could represent them at the auction.
This wasn’t just any townhouse—it was a rare opportunity. It had been over a year since the last property in the block had sold, and buyers new to the market wouldn’t have the full picture of its value. Fortunately, I had been at the previous auction, kept detailed records, and even written a blog about it. That knowledge would prove invaluable.
Read my previous insights on the sale of 27/114 Pitt St Redfern
The property - 14/114-124 Pitt St, Redfern
This townhouse stood out for its practical layout and generous space:
Basement garage with direct access
Open-plan living and dining on the ground floor
Three well-sized bedrooms spread over two additional levels
Plenty of storage throughout
The Strategy: Understanding Market Timing
The key factor affecting the value of #14 was what had transpired in the building’s strata over the past year. The previous sale of #27 had closed at $1,830,000 but at a time of significant strata uncertainty due to upcoming remedial works. Buyers had been hesitant, driving prices down.
Fast forward 14 months, and the necessary work had been completed, removing that uncertainty. This directly increased the property’s value, but the broader market was still soft, and prices overall were either stagnant or falling.
The Auction: A Fast-Paced Battle
The auction, conducted by expert auctioneer Damien Cooley, was intense. It became clear early on that bidding was heading towards $2,000,000—an uncomfortable number for many in attendance.
The Winning Strategy: Outplaying the Competition
Preparation was key. My clients and I had done extensive research on the property’s value, comparable sales, and alternative options. We knew what else was available, what met their needs, and what it would cost them if they missed out on this opportunity.
When bidding started to slow around $1,950,000, I adjusted my approach, using varying increments to keep the competition guessing. The goal was to make the other bidders think I had unlimited budget—without actually overpaying.
At $2,015,000, the gavel fell. My clients had secured their dream home!
Post-Auction: A Smart Investment Pays Off
Three months later, another nearly identical townhouse in the block (#25) went to market. Watching the sale of a similar property can be nerve-wracking, as it confirms whether you’ve made the right decision.
The result? #25 sold for $2,090,000—$75,000 more than what my clients had paid.
It’s fair to say we nailed this purchase.
Check out the sale result for 25/114-124 Pitt St Redfern
The Takeaway: Knowledge, Strategy, and Smart Bidding Win
This success story highlights the importance of having the right strategy, market knowledge, and bidding expertise. By understanding the property’s true value, navigating strata complexities, and executing a calculated auction strategy, my clients walked away with a fantastic home and a smart investment.
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