A rise in interest rates could start playing on the confidence of buyers and sellers across Sydney, as experts warn of a wary market.
While many auctions around Greater Sydney today achieved above target results, the rise in interest rates could cast doubt on the rest of the market, with Ray White NSW head of auctions David McMahon commenting that “it appears to be rescheduling behaviour”.
“Our sellers are reporting a higher proportion of pre-auction properties – now at 24 per cent – compared to recent months, as sellers are showing a greater willingness to consider strong pre-auction offers,” he said.
Each of the country’s four largest banks raised mortgage interest rates by 25 basis points late last week.
Auction attendees this morning at Greenacre. Photo: Thomas Annettes
Mr McMahon said a total of 164 Ray White auctions were scheduled for NSW today, a significant drop from the 205 held this time last year.
He noted that the competition “remains stable”, with an average of registered bidders at each auction.
“Although buyers may be more cautious in the current rate environment, the results suggest that demand is still there,” he said.
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Ray White NSW head of auction David McMahon. Photo: John Fotiadis.
According to McGrath Revesby’s Matthew Laface, there has only been “talk” about interest rates hurting consumer activity in the open house since the RBA’s rate decision.
Mr Laface said he had “not really seen it”, especially in his area.
“It doesn’t sound like interest rates have had a big impact on the market here in Revesby,” he said.
Mr Laface sold a four-bedroom house in Sydney’s South West this morning, as 52 Rowland St, Revesby went under the hammer for $1.873m.
The sale cleared the home reserve of $173,000.
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52 Rowland Street, Revesby sold at auction for $1.873m.
Eight tenders were registered and four were engaged in what Mr Laface described as a “rapid fire auction” which saw 31 bids.
According to Mr. Laface, the house was bought by a lady from Bankstown.
Interest was mainly coming from young couples and families, said Mr Laface, noting that buyers in the area were not affected by the increase in interest rates.
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16/27A Eaton Street, Neutral Bay
In the apartment market, developer Edward Riley said the right locations are attracting stiff competition.
Sold a unit on Eaton St in Neutral Bay today for $840,500; the result was $90,500 over budget.
The property has 10 registered auctioneers selling today, which Mr Riley said showed strong competition in this price bracket.
“Today’s result shows that first home buyers are still active and ready to compete hard for quality property, especially in green pockets like Neutral Bay,” he said.
“Despite the broader market buzz, the sub-$1m bracket remains a hotly contested battleground, driven by buyers keen to find a place close to the city.”
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Brothers Darrin and Kevin Querin put up a recently sold sign on their parents’ property. Photo: Thomas Annettes
Elsewhere, an emotional auction in Greenacre saw two brothers close out their family of six decades, as they sold their parents’ estate.
The three-bedroom house at the end of Illawong Cres has been in the Querin family for more than 60 years.
Brothers Darrin and Kevin Querin grew up in a red brick home, where their parents would host family events in the backyard.
“Our parents like to have parties here,” said Darrin.
“The back area lent itself well to entertaining and there were always people to cook the barbecue.”
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Family home on Illawong Cres, Greenacre
His father, Peter Querin, moved to Sydney from Italy after World War II.
“He came here with nothing,” said Darren.
“Without a penny in his pocket, and not being able to speak English, he was very successful.
“He ended up being the best engineer in the field.”
Mr Querin’s name appears on the National Monument to Migration in Darling Harbor and according to Darrin, he was also an interpreter for the Italian Olympic team during the 2000 Olympics.
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Mr Querin’s name is included on the National Monument to Migration at the Australian National Maritime Museum in Darling Harbour. Photo: James A/TripAdvisor
The Querin family home sold at auction for $1.36m, bringing it $30,000 over reserve.
Only two bidders were active among the three registered, in a quick auction that lasted about seven minutes.
Craig Stephenson of Ray White Bankstown said the original home was “still in good shape”.
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Darrin Querin (center), wife Julie (left) and brother Kevin (right) celebrate the emotional sale of their family home. Photo: Thomas Annettes
Mr Stephenson noted that consumers were “a bit wary” following the rate hike this month.
“Overall, consumer confidence has been good for the past few weeks,” he said.
“Supply is likely to be slightly lower this time compared to last year.”
The sale price of the house fell just below Greenacre’s $1.445m median for a three-bedroom house.
Mr. Stephenson said the buyers, who are a local family, bought this home to be close to one of their relatives who lives only two streets away.
The Querrins are happy to see the home go to another family, and Darrin said the home has been “passed on to the next generation”.
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To the north, a beautiful four-bedroom plot for sale in Gordon for $3.998m.
The spacious home exceeded its reserve by $148,000, selling for $248,000 above the suburban median price for a four-bedroom home.
Marketed by Jing Peng of LJ Hooker Gordon, the property sits on 1,005 sqm of private land and includes a 15m lap pool, established gardens and multiple formal and informal living spaces.
Four players were competing for the home on Highlands Ave, between Gordon and Pymble.
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