Sydney auction: St Marys fiber house sold for 1.81 million Australian dollars, twice the reserve price, intermediaries and sellers were confused

An outdated fiber house in St. Marys was sold at auction for $1.81 million-twice the seller’s reserve price-causing a sensation in the local community.

The house located in a 961-square-meter block near the St Marys business center attracted 22 registered bidders, and the price was US$920,000 above the reserve price.

Records show that this is one of the highest prices ever paid for a single block without high-density zoning in the area. This is also four times the price the seller paid for the property in 2012, which is much higher than the suburb’s median house price of $670,000.

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Pieter Boele, a seller who is about to turn 80, said the sale of the Western Sydney suburbs will benefit him for life.

“What happened was very special and surprising,” Mr. Boele said, adding that he thought the property might sell for about $1 million.

The house is located in a block, but most of the bidders are not developers.

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Mr. Boele did not participate in the auction and stated that he did not believe in the price when he initially talked with the broker. It wasn’t until the agent sent him a photo of the contract that he didn’t sink into it.

Mr. Boele was at Gidley Street As an investment property, but said he was forced to sell because Covid-19 destroyed his 30-year flower business.

“(The auction) changed everything,” he said. “At this price, I don’t have to worry for the rest of my life.”

Peter Diamantidis, sales agent of Ray White-St Marys, stated that he was confused about the final price given the limited appeal of medium-density zoning to developers.

“I don’t know why it rose so high,” he said. “I have been selling in the area for 20 years, and nothing like this has ever happened.”

Ray White-St Marys has ordered an independent valuation of the property and used it to determine the reserve.

Mr. Diamantidis said that the initial expectation was that the property would attract childcare providers or investors looking for boarding houses.

Instead, the property was sold to an investor, and it is understood that the investor plans to continue to rent out the property and at the same time provide a “land reserve” for the future. The current weekly rent is $280.

Mr. Diamantidis said that considering the uncertain changes in the future zoning, the purchase may be a gamble.

Auctioneer Tim Snell received an opening price of $900,000, and the bid was increased in early increments of $100,000.

According to reports, the buyer was a land banker.

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“No one offered any bids before the auction, so it was a pleasant surprise to get this kind of bid. From about $1.1 million, I started to realize that it would be a real cookie,” Mr. Diamantidis said.

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According to realestate.com.au, the median house price in St Marys is $670,000.

The broker took an unusual step and announced a reserve of $890,000 before the auction. “We think it’s best to be frank and transparent,” he said.