Sydney property owners make a nearly 900% gain in a decade with A$4.6m sale
Doctors Andrew Hardy and Alex Bereny cashed in on the hot Sydney market, selling the property in the exclusive suburb of Double Bay that housed their practice, for A$4.61 million (NZ$4.9 million) on Monday,
They're moving to a larger medical centre down the road and made a near 900 per cent return on the property, for which they paid A$475,000 in 2004.
The auction of the five-bedroom house drew a crowd of about 50 people at the Sotheby's International auction.
The final price for the 582sq m property exceeded the price guide of A$3.8m to A$4.1m, after a private local investor bought the property following steady bidding from four parties.
Developers, investors and doctors vied for the house which held the practice on the upper levels and two apartments on the lower level.
"There's a lot money around. [In the eastern suburbs], there's a lot of inheritance and old money. Some people have so much money but they don't like to invest in shares," selling agent Sotheby's Michael Pallier said.
"I think it's a healthy market, and a lot of [demand] is interest rate driven."
Property industry experts said the strong clearance was "abnormal for this time of the year", referring to the end of the spring selling season.
Low interest rates have accelerated the demand for housing in Sydney and major capital cities with no stock to mop up it up. Prices in Sydney were coming close to another double digit growth, according to Corelogic.
GOOD LISTINGS NOW
But things could change at the end of the year, auctioneer David Scholes said. "We are getting good listings now. We might see some fresh activity towards the end of the year."
Strong demand was also present for the auction of a 562sq m family home in the suburb of Bellevue Hill. Two buyers fought it out and a local owner occupier bought it for A$4.6m, at the higher end of the A$4.3m to A$4.6m price guide.
The new owner who was travelling in Adelaide bid on the phone and not even a mid-auction phone breakdown could deter the sale.
The home which features solid masonry construction, high ceilings, covered terraces and a swimming pool has been held by its original owners for 50 years.