127 Regent Street, New Lambton
DEVELOPERS had their eye on a large block with rear lane access in New Lambton that went to auction on the weekend.
The three-bedroom weatherboard cottage in a sought-after pocket of the suburb drew strong interest throughout the campaign, with the 720 square metre property appealing to developers looking to subdivide the block.
However, an owner-occupier who plans to renovate the home outbid two developers for the deceased estate which was snapped up for $1.7 million.
"The family has owned it for a long time and it was their dad's property, so those are always emotional transactions because it is closing a chapter of their lives," Presence Real Estate listing agent Katie Kepner said.
"They were really happy with who it went to and were happy to hear that the house is going to stay and be renovated and not knocked down."
The floorplan of the property had undergone changes over the years and included a self-contained studio at the rear.
The agent said it was a house "that is going to need some serious renovating".
"It was used as a dual occupancy residence with a studio at the back with its own kitchen, laundry and bathroom, so it's not a floorplan that suited everyone but they could see the potential for the renovation," she said.
"It had the floorspace and the ability to shift things around and make it one of those really spectacular New Lambton cottages.
We spoke with the agent about the auction and the result:
The property: A three-bedroom, two-bathroom weatherboard cottage with a 16-metre frontage within walking distance to New Lambton Public School and New Lambton Village. Rear lane access and a large block size offered the potential for development.
The result: It sold under the hammer for $1.7 million. Price-wise, the number didn't make as much sense at that level for people who were simply looking at it as a residential home, so it was really the development potential that took the price point to that level.
What made this property special? There was a lot of interest in this one because it is such a fantastic spot in New Lambton and so close to the school. Everything you could want is within walking distance. It was very popular with New Lambton residents or people wanting to get into the suburb. There was a lot of interest in that department but then also really big interest from developers who were looking to maximise its potential with the rear lane access. The block could be subdivided and it was hotly contested by developers who would have been looking to do that pretty much right away.
How many registered bidders? We had three all from the Newcastle area, including two developers.
How did the auction unfold? The opening bid was $1.5 million and there were 18 bids in total that took it to $1.7 million. Everyone was involved in the bidding and it was a fun one to watch. Some will hold their cards close and then all of a sudden they chip in halfway through and start bidding against someone else. The gentleman who ended up buying it opened the bidding and he was strong and consistent the whole time. He knew what he was doing.
Was the result a surprise? The guide was $1.65 million and the owners were committed to selling on the day so they were really open to letting the market tell them what they were prepared to pay. They had come in with the thought 'If the market tells us it's $1.5 million or $1.6 million, that's what they're prepared to pay and we are happy to move forward'. The potential was there because the guide was at $1.65 million so we had hoped it could get to that level. It was a fantastic result. The fact there was interest at that level goes to show that it was the true value.
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