Neighbour Wins Waverley Apartment for $1.68m
A three‑bedroom art‑deco apartment in Waverley closed at auction for $1.68 million, outbidding five first‑home buyers and giving the winning neighbour ownership of half the boutique block and a lock‑up garage. The sale highlights the continued demand for high‑end units with unique features in Sydne…
By Felo News Desk · Published
A three‑bedroom art‑deco apartment in Waverley was sold at auction on Saturday for $1.68 million, a price that eclipsed the $1.6 million reserve and left the winning bidder—an upstairs neighbour—owning half the building and a coveted lock‑up garage. The property, located at 2/4 Kent Street, is one of only two units in the four‑storey block that offer a garage, making it a rare find in the area.
What Happened?
The auction opened at $1.4 million, below the $1,585,000 guide price, and saw bids rise in increments of $25,000, $5,000 and $1,000. Despite several attempts to secure further bids, the price topped out at $1.68 million, $80,000 above the reserve. The buyer, a neighbour from the unit above, secured ownership of half the building and access to the garage, a feature that is highly sought after in the eastern suburbs.
Background on the Property and Market
2/4 Kent Street is a boutique block of four units, each with a three‑bedroom layout and art‑deco detailing. The ground‑floor unit’s inclusion of a lock‑up garage sets it apart from the other three units, which do not have parking. The property’s last recorded sale was $520,000 in 2002, indicating a significant appreciation over the past two decades.
Last week, 796 properties were scheduled for auction across Sydney. Domain’s preliminary clearance rate for the week was 48 percent, a slight decline from the previous week’s 53 percent but still above the 47 percent low seen in June. The market remains cautious following changes to the tax treatment of investment properties announced in the May budget, which has caused some buyers to step back.
Competitive Bidding and Buyer Profile
Six parties registered for the Waverley unit, five of whom were first‑home buyers. The auction attracted a small number of investors, with the majority of attendees belonging to the first‑home buyer category. McGrath’s Charles Stevens noted that the two downstairs apartments also had garages, whereas the two upstairs units did not. He added that the majority of visitors were first‑home buyers, with 12 people returning for more than one inspection. The winning bid came from a neighbour who had previously owned the unit above, allowing them to acquire half of the building.
Other Notable Auctions in Sydney
In Drummoyne, a waterfront apartment at 12/74 Wrights Road sold for $2.16 million, 311 000 above its reserve. The property was marketed without a guide price and attracted a mix of downsizers and builders looking to flip. Ray White’s Mario Carbone highlighted that the lack of a guide price was due to the property being a deceased estate, and that buyers were cautious but still willing to compete when they saw value.
Across the city, a Stanmore terrace at 82 Northumberland Avenue closed at $1.87 million, 200 000 above its reserve. The property’s guide price was raised from $1.65 million to $1.7 million midway through the campaign. The auction was described by Ray White’s Matt Carvalho as a strong, fast‑paced event with only two bidders competing.
Market Outlook and Future Trends
LJ Hooker’s head of research, Mathew Tiller, expressed concern over Sydney’s 48 percent clearance rate, describing it as “not a good start” for the spring selling season. He noted that listing activity is lower than usual for early spring, and that some sellers are holding off to gauge market conditions. Tiller added that the Reserve Bank of Australia’s upcoming decision could influence buyer confidence, with a rate hold potentially stabilising the market and a rate increase likely to dampen demand.
As the market adjusts to the new tax regime and economic uncertainties, buyers are expected to remain cautious. However, properties that offer unique features—such as lock‑up garages in high‑end units—continue to attract competitive bids, as demonstrated by the Waverley auction.
What Happens Next?
The winning neighbour will now complete the purchase and take ownership of half the building. The sale sets a benchmark for similar boutique units in the area and may influence future pricing strategies for properties with rare amenities. As the market moves into spring, sellers will likely monitor the RBA’s decision closely, while buyers may look for comparable opportunities that offer both luxury and practicality.
Overall, the Waverley auction underscores the resilience of Sydney’s high‑end market and the enduring appeal of properties that combine style with convenience.
Key facts
- Neighbour wins Waverley unit for $1.68m, outbidding five first‑home buyers
- Property includes rare lock‑up garage in a boutique block
- Sydney’s auction clearance rate at 48% amid cautious buyers
- Other Sydney auctions show strong demand for unique features
- Market outlook hinges on RBA’s upcoming decision
Why it matters
The sale demonstrates that premium features like lock‑up garages can drive prices above reserve in a cautious market, offering insight for buyers and sellers navigating Sydney’s competitive property landscape.
Frequently asked questions
What is the significance of the lock‑up garage in the Waverley unit?
Lock‑up garages are rare in the eastern suburbs, especially in boutique blocks, making them highly sought after and often driving up auction prices.
How does the auction clearance rate affect buyers and sellers?
A lower clearance rate indicates fewer sales, which can signal a buyer’s market and may prompt sellers to adjust prices or hold off listing.
What factors are influencing buyer caution in Sydney?
Changes to the tax treatment of investment properties and broader economic uncertainty are making buyers more cautious, leading to tighter bidding and longer market times.
Sources
- [1] smh.com.au — originally reported as “Sydney auctions: Waverley neighbour pays $1. 68m for unit with garage, beating four first home buyers”
