Sydney auctions: One of Sydney’s worst homes sells for shocking price

The Annandale home sold for $300,000 over reserve. Picture: Tim Hunter

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A rundown Annandale house with mould on the walls, large holes in the ceiling and unstable flooring turned into hot property on Saturday when it attracted 15 bidders and sold under the hammer for $1.32m.

The price paid for the home on Water St was $300,000 above the reserve and $470,000 above the $850,000 price guide. It was the first time the property, which was occupied until recently, was up for sale in 125 years.

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It is understood the only source of running water was in the bathroom, which doubled as a laundry.

Selling agent Rebecca Duncan from Belle Property-Annandale told The Daily Telegraph in the days leading up to the auction that the property was popular due to the lower price point for the area.

Auctioneer Ricky Briggs during an auction at 4 Water St, Annandale. Picture: Tim Hunter.

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The Annandale home had a price guide of $850,000.

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The median price of houses in Annandale, one of the inner west’s most sought-after areas, is over $2.1m.

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“Although it has a good price point for Annandale, it needs a complete remedial renovation,” Ms Duncan said. “It has one power point that operates the whole house.”

Auctioneer Ricky Briggs said bidding escalated quickly and was over “in about six minutes”.

The sale came shortly after another “original” condition property in nearby suburb Drummoyne changed hands at auction for $3.52m.

The home on Duncan, listed with agent Ben Horwood of Horward Nolan, had last traded in 1973 for $35,500.

There was a crowd watching the Annandale auction, including 15 bidders.

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The property included a modest three-bedroom house with dated finishes, but it was likely the position and location that pushed up the price – the home is a few blocks from the Harbour.

Sydney home seekers were expected to have a less frantic path to getting a foot on the property ladder this year, but things haven’t been going to script at auctions so far.

Up to 16 bidders were reported at weekend auctions and multiple properties sold for well above their expected price.

Preliminary indicators suggested about 65-70 per cent of auctions were a success this week, in line with last week’s clearance rate. This kind of success rate is often correlated with rises in prices.

1 Duncan St, Drummoyne, NSW sold for $3,520,000.

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Agents reported that higher stock levels and declining affordability – which economists had claimed would soften demand in 2024 – were yet to temper the market.

Another standout sale was a South Coogee mansion that sold just prior to auction for an undisclosed sum thought to be near the $18.45m price guide. It’s a new record for the suburb.

A Marrickville house sold pre-auction this week for a suburb record price of $4.9m.

Houses in Paddington and Glebe sold for more than $300,000 over reserve. There were other higher than expected sales in Budgewoi, Maroubra, Tempe and Roseville.