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A residence in Sydney’s inner west has sold under the hammer to a Chinese developer for $2.47 million, following a hot auction among developers and home-buyers.
Eight parties vied for the opportunity to own 28 Chandos Street, Ashfield, a traditional house on 700sq m, in a growing trend of developers and home-buyers going head to head for residential property in suburban areas.
Savills Australia’s Tom Tuxworth, Nick Tuxworth and David Hickey brokered the deal in conjunction with McGrath Estate Agency’s Peter Starr, saying they had witnessed this phenomenon regularly in recent months.
“We had a 50/50 split of residential buyers and developers competing to buy the property, which fueled the strong price,” Mr Tuxworth said.
“This is becoming substantially more common, with developable land becoming much harder to find in residential areas.
“Many of the traditional homes on large land parcels are becoming development sites.”
Mr Tuxworth said these types of properties were attracting strong interest from developers, who were competing with residential buyers and in many instances, “pricing them out of the market”.
“The sale of 28 Chandos Street was a clear example of this, with eight bidders putting their hands up at auction,” he said.
“The ultimate buyer was a locally based Chinese developer, who outbid two residential home-buyers to secure the property.”
Mr Tuxworth went on to say that the site was “raw” and had scope to develop an apartment building or a boarding house.
“The market for development sites in well-located areas continues to go from strength to strength, especially in the inner west, which is involved in numerous government infrastructure projects,” he said.