The Sydney real estate market continues to show signs of life, with seasoned buyers willing to pay well over reserve at auction to purchase deceased estates in sought-after locations, according to realestate.com.au.
Nearly 40 Sydney properties are categorised as deceased estates on the property website. Some of them are located in popular lifestyle suburbs like Darling Point, Neutral Bay, Bellevue Hill and Palm Beach.
These properties appeal to builders who are planning to rebuild from scratch, as well as to owner-occupiers who prefer to renovate before moving in.
Deceased estates’ main selling point is often the opportunity to score a rare untouched home in a tightly-held location, according to Realestate.com.au Chief Economist Nerida Conisbee.
“Often the suburbs they are located in have grown in popularity over many years, with a lot in the inner and middle suburbs giving buyers a big opportunity. To find a house that hasn’t been renovated is getting harder. It could already be a solid house but it gives people the chance to put their own stamp on it,” she said.
The greater need to sell a deceased estate gives buyers the guarantee that they will be able to secure the property, which makes it more attractive to many home hunters.
Daphne Sauvage, an agent at Sydney Sotheby’s International Realty, is selling a waterfront one-bedroom deceased estate in Darling Point. She said that the interest from all buyers groups has been very high.
“It is very popular. The magic of this one is a large cross section of the market is keen,” she said.
Agent Peter Gordon of Cobden and Hayson, meanwhile, recently sold a deceased estate in Balmain, which was priced $20,000 above the reserve. Aware of the sellers’ desire to immediately close the deal, prospective owners become more attracted to this kind of estate.
“Buyers naturally feel they will be sold at auction and that the beneficiaries aren’t holding out for an unrealistic price. They often expect good value but in actuality, they often end up selling for a higher price through the increased competition. Despite the number up for sale, these properties are becoming rarer, as every time they sell they are given a makeover, making them more popular when they hit the market,” he said.
Overall, the majority of those who are inclined to snap up these properties are professional couples, as well as young couples looking to buy, then renovate and sell in a few years.
