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Dilapidated Sydney homes selling well above reserve

Three rundown Sydney properties have sold well above their reserve price over the weekend, highlighting just how strong the current market is.

A five-bedroom home that previously belonged to a hoarder at 17 Cheviot Street, Ashbury, sold for $300,000 above its reserve price, fetching the vendors $2.35 million in what was a hotly contested auction.

Selling agent Marco Errichiello of Rich and Oliva said the property presented the new buyers with a ‘blank canvas,’ in what is one of the most sought after streets in the suburb.

“The property was sought after because people knew they could renovate it how they wanted,” Mr Errichiello said.

“It’s also on one of the most sought after streets in Ashbury, and the other advantage was because it had a north-facing backyard.

“It really was the typical blank canvas and people thought there’d be good value because of the work involved in fixing it up.”

Mr Errichiello said there was strong interest during the lead up to auction day, with local buyers showing the most interest.

“It was a competitive auction between two people who were locals,” he said.

“They were just family people who wanted to build their own home there or renovate the current one.

“The only really serious buyers were those that lived in the suburb and the locals are the ones that truly understood the quality of the location and the potential.”

17 Cheviot Street, Ashbury proved appealing to renovators. Image credit: realestate.com.au

Mr Errichiello said the strong result highlights the type of demand he’s seeing for good properties.

“The market is strong for the right properties,” he said.

“This property was always going to be popular, good market or bad.”

“Simply because of the street that it’s in, the potential and the aspect at the back.”

“People are confident that when people do the renovation, the property will be worth it once it’s done.”

A rundown Bondi semi also set an eye-watering price at auction, selling for $1.15 million above the price guide.

According to the Sydney Morning Herald, the three-bedroom property at 46 Avoca Street, Bondi, sold for $5.65 million at auction.

46 Avoca Street, Bondi sold for $5.65 million, which was $1.15 million above the reserve. Image credit: Domain

Cooley Auctions auctioneer Damien Cooley said the property sold to upgraders looking for a great location.

“It is rare to market … whilst it’s a semi, it is on 500sq m of land with a side driveway, off-street parking and significant opportunity to renovate and add value,” Mr Cooley said.

“You’re never overpaying for property like that because good quality property will sell well all the time.

“They’re also buying for a great lifestyle. What price do you put on that?”

In Strathfield, a young family purchased another property that had seen better days at 5 Arthur Street for $3.55 million, $1.25 million above its reserve.

5 Arthur Street, Strathfield sold for $3.55 million, which was $1.25 million above its reserve. Image credit: Domain

There were 17 registered bidders on the 696sq m block with the property selling at auction to out of area buyers looking to build their dream home.

Cooley Auctions auctioneer Michael Garofolo told the SMH the buyers paid a premium to secure the property.

“’[The buyers] went at it like a dog at a bone,” Mr Garofolo said.

“We were all gobsmacked … it’s crazy money and they paid a premium.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.