A landmark Queenslander that hadn’t changed hands in 105 years sold for $2.03 million after one of the weekend’s fiercest auction battles.
Despite clearance rates plummeting across most capital cities following the latest interest rate hike, 10 bidders registered for 87 Khartoum Street, Gordon Park.
Built in 1921, the three-bedroom, two-bathroom house sits on an 810-square-metre block and has stayed in the same family ever since.
“The two sisters who were born in the house lived there until recently, when one passed away and the other went into care – she’ll turn 99 soon,” said lead selling agent Holly Bowden, of Ray White Wilston.
A young first home buyer “with his tyres pumped up” opened bidding at $1.4 million, sparking a flurry among four bidders until the home was called on the market at $2.01 million.
Before a crowd of about 80, the eventual buyer made his move, going head-to-head with a local woman.
“She’d made a pre-auction offer but she’d already pushed well past that price,” Bowden said.
“Between the two of them it got down to $1000 rises for a while.
“They both appreciated the quality of the home and that’s why they wanted it.
“The executor was there and was delighted and excited and went straight to tell the client … but it was sombre because the underbidder was quite upset.”
Bowden said the auction topped Ray White’s national list for registered bidders at the weekend, proving the power of quality property – even in a tough market.
“People are seeking out big blocks and quality and they’re seeking family homes more than anything,” she said.
“I do think there’s a lot of wait-and-see attitude, which I don’t understand because now really is the best time to buy. But it’s like people are waiting for the bottom.”
The home was one of 178 scheduled auctions across South East Queensland over the past week. By Saturday evening, Domain recorded a preliminary clearance rate of 18 per cent from 125 reported results, with 15 homes withdrawn.
In Hawthorne, a developer paid $1.625 million for a rare postwar home, beating a real estate agent and an owner-occupier for the keys.
The three-bedroom home sits on a 465-square-metre block with a 10-metre frontage at 32 Harris Street, a stroll from Hawthorne Park and Oxford Street.
The developer opened bidding at $1.4 million, sparking a flurry of rises to $1.5 million before bidding stalled.
It then became a battle between the agent and the developer, with bidding stalling at $1.54 million – still below the reserve.
After a quick chat with the two punters, selling agent Paula Pearce, of Place Bulimba, managed to get the home to $1.55 million and called it on the market.
“Then it went crazy. We had $5000 and $10,000 bids thrown down and it took about five minutes,” she said.
“But in the end the real estate agent said he was out … the owner-occupiers said no and the developer got it.
“He was extremely excited. He’s a seasoned developer and he knows good stock and was prepared to pay what he needed to within reason. He’ll build a beautiful home there.”
Pearce said the result showed enthusiasm and confidence remained in the market.
“The fact that someone spent that much on land says it all,” she said.
The vendors had held the property for years as an investment and are cashing in to build their retirement home on the coast.
In Forest Lake, a five-bedroom home on a 780-square-metre battle-axe block sold for $1.41 million in a pre-auction deal.
Selling agent Saeed Moghaddam, of Brisbane Real Estate, said about 20 groups inspected the home at 11 Cheltenham Place, but many missed its charms.
“This home really doesn’t show much from the street but when you come inside it’s gorgeous,” he said.
“But a lot of people didn’t see that and they didn’t like the battle-axe shape. But the guy who bought it did.
“So we made the decision to sell it just before the auction because in this market if you get the right buyer, you can’t afford to muck around.”
Moghaddam said the buyer and his family moved from NSW about six months ago and had been renting while they hunted for a well-presented home where everything had been done.
The vendors built the home back in 2004 and kept it in an immaculate condition, with features spanning a workshop, two bathrooms, an al fresco area and a location that backs onto parklands.
Despite the result Moghaddam said a lack of buyer confidence was still shaping much of the market, with buyers playing hard ball.
PRD chief economist Dr Diaswati Mardiasmo said Brisbane’s low auction clearance rate was a direct translation of the fourth cash rate hike.
“And we’re going to be in for some more low weeks as we might get another hike in November.”
Mardiasmo warned the hike hit more than just home loans, but affected whole household budgets.
“But if you are financially ready then this is your time to buy.”