Only one buyer participated in the auction of the three-bedroom property, which began and ended with a single bid of $1.1 million, bang on reserve.
Buyer Wendy Franklin, who represents a wool export company, said the purchase was for his staff, whose commute now takes just 15 minutes to nearby Yennora, where they work and attend weekly wool auctions.
“Our employees have to travel two and a half hours in one direction. So we thought to make it easier for our employees, we would buy them a place to stay during the week,” Franklin said, adding that it was difficult to find younger employees.
“With the cost of living, it’s hard to save money, so this is something to help our employees buy their own home when they’re ready.
“In order to save time and money when the staff do not have their own home, we can assist and support them. It is a very useful [location]† You can walk to the shops, to the train stations.”
She said it was an idea initiated by the company manager and not by staff to attract and retain younger workers.
This week’s rate hike didn’t affect the company’s purchase decision, Franklin said, as interest rates were still lower than they were five years ago.
“A few months ago we should have paid more, so it was the right time to buy.”
Sales agent Broderick Wright of Ray White Parramatta, Oatlands and Northmead said that while buyers were more astute, with more homes for sale to choose from, the initial price hike hadn’t scared them yet.
“We don’t see those feverish auctions anymore… you’ll probably see more of a flow on effect [of rate rises] when buyers go back to the bank for pre-approval,” Wright said.
“Most buyers had pre-approval prior to the rate increase.”
The sellers, semi-retirees who used it like a hole in the air themselves, bought it for $700,000 in 2014, data shows.
North Parramatta’s median home price rose 6 percent to $1.1 million in the year to March 2022 on domain data.
In Kellyville, downsizers bought a five-bedroom house at 22 Balmoral Road for $2.39 million.
They were one of seven parties, a mix of young families and upgraders, who registered to bid on the home, which had a target price of $2.1 million.
An opening bid of $2 million was knocked back before the auction kicked off for $2.1 million, as five buyers participated.
The reserve was $2,325,000.
Auctioneer Stu Benson of Benson Auctions said buyers did not make any rate hikes on Saturday.
“There was really no talk of that as most of these buyers have had full approval and these rate hikes are factored into lending at this point… I’d be surprised if these early hikes have much of an impact at all. †
It was sold through Chris De Celis of The Avenue Real Estate Agency.
The block last traded for $477,500 in 2010, records show.
Kellyville’s median home price rose 25.1 percent in the year to March 2022 to $1.67 million.
In Denistone, a seven-bedroom house at 4 Enid Street sold for $3.72 million, a suburban record.
The size of the house attracted four multi-generational families as registered buyers.
Bidding opened a blow to the $3 million guide and rose in several steps as all buyers entered the sale.
The reserve was $3.5 million and Belle Property Ryde sales agent Alex Macri said the owner was happy to meet the market and adjust his reserve.
“As rates had gone up, I thought the auction wouldn’t have worked given the owners’ reserve price, but there was fierce competition between three buyers,” Macri said.
“Clearly the buyers’ budgets exceeded our expectations.”
The home last sold for $1.35 million in 2015, records show, the price has more than doubled in seven years.
Denistone’s median home price reached $2.05 million in the year to March.