The following article was published by The Daily Telegraph / Realestate.com.au on Aug 21st, 2021.
An investor upstaged 12 other bidders for the keys to a four-bedroom terrace in Bondi Junction at a virtual auction.
Ray White Woollahra principal Randall Kemp said not only was the seller shocked, but he also did not expect the home to sell at that level.
“We thought the auction would level out at $2.8 million to $2.9 million based on feedback, so this price certainly was not on anyone’s radar,” he said.
“It goes to show the strength of what an auction campaign can deliver for a seller.”
Mr Kemp said a shortage of homes had helped to inflate prices during the lockdown, with buyers forced to compete on a limited supply of homes.
“Once lockdown ends we will see more homes on the market, but it won’t be a flood of listing,” he said.
Mr Kemp said investor paid $3.3 million for the property due to its location within the Woollahra Public School catchment.
“This school brings people to the area, which means an investor is able to charge a lot more in rent than if it was not in that catchment,” he said.
The auction started with an opening bid of $2.75 million, which was $50,000 above the price guide. The second bid auctioneer Clarence White received was $2.9 million — bang on the reserve.
Bidding then climbed in increments of $50,000 until $3.15 million, before the eventual underbidder tried to land a knockout blow with a $100,000 jump to $3.25 million.
The investor reacted by landing the actual knockout blow with a single $50,000 bid to take it to $3.3 million required to be the new owner.
Mr White said it was important vendors researched what virtual auction platform was the right choice for them.
He said Google Meets and Zoom had proven to be effective at recreating an on-site auction experience for all parties.
“Selecting the right platform is very important to ensuring the process runs smoothly and you get the best result,” he said.
“Platforms that allow buyers to see their opposition does help to create a transparent environment we are used to at onsite auctions.”
Mr White said when buyers were able to see their competition, they were less likely to muck around and compete harder.
The Bondi Junction terrace was one of 535 properties due to go under the hammer this weekend in Sydney. CoreLogic reports this was down from the 551 auctions scheduled last weekend.
