A single buyer entered the auction for the three-bedroom property, which began and ended with a single bid of $1.1 million, smack dab in the reserve.
Buyer Wendy Franklin, representing a wool export business, said the purchase was for her staff whose journey will now take just 15 minutes to nearby Yennora where they operate and attend the auction wool weeklies.
“Our staff have to spend two and a half hours to get to work one way. So we thought to make it easier for our staff, we would buy them accommodation during the week,” Franklin said, adding that it was difficult to find younger workers.
“With the cost of living it’s hard to save money, so it’s something to help our staff so they can buy their own house when they’re ready.
“To save time and money if the staff is not the owner, we can help and support them. It’s very useful [location]. You can walk to shops, to train stations.
She said it was an idea initiated by the manager of the company rather than the staff with the aim of attracting and retaining young workers.
The rise in interest rates this week did not affect the company’s buy decision, Franklin said, as rates were still lower than five years ago.
“A few months ago we should have paid more, so it was a good time to buy.”
Sales agent Broderick Wright of Ray White Parramatta, Oatlands and Northmead said while buyers were shrewder, with more homes for sale to choose from, the first rate hike had yet to rattle them.
“We don’t see those feverish auctions anymore…you’re probably going to see more of a stream on effect [of rate rises] when buyers return to the bank for pre-approval,” Wright said.
“Most buyers had pre-approval before the rate hike.”
The sellers, semi-retirees who used it as a bolthole themselves, bought it for $700,000 in 2014, records show.
North Parramatta’s median home price rose 6% to $1.1 million in the year to March 2022 on domain data.
In Kellyville, downsizers bought a five-bedroom house in 22 Balmoral Road for $2.39 million.
They were one of seven parties, a mix of young families and home-improvers, who signed up to bid on the home, which had a guide price of $2.1 million.
An opening bid of $2 million was rejected before the auction began at $2.1 million with five buyers participating.
The reserve was $2,325,000.
Benson Auctions auctioneer Stu Benson said buyers did not see rate hikes as a problem on Saturday.
“There really hasn’t been any conversation knowing that most of these buyers have been fully approved and these interest rate hikes are being factored into lending right now…I would be very surprised if these early hikes have a lot of impact. ”
It was sold through Chris De Celis of The Avenue estate agency.
The block last traded at $477,500 in 2010, records show.
Kellyville’s median home price rose 25.1% to $1.67 million in the year to March 2022.
In Denistone, a seven-bedroom house in 4 Enid Street sold for $3.72 million, a suburban record.
The size of the home has attracted four multi-generational families as registered buyers.
Bidding opened on the $3 million guide and rose in varying increments as all buyers participated in the sale.
The reserve was $3.5 million and sales agent Alex Macri of Belle Property Ryde said the owner was happy to meet the market and adjust his reserve.
“Since rates had gone up, I thought the auction would have failed given the owners’ reserve price, but there was intense competition between three buyers,” Macri said.
“Obviously the buyers’ budgets exceeded our expectations.”
The home last sold for $1.35 million in 2015, records show, with the price more than doubling in seven years.
Denistone’s median home price hit $2.05 million in the year to March.
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