A prime development site in Merewether has sold for a multimillion-dollar price after 12 bidders lined up to secure the property at auction.
Positioned on a 635-square-metre corner block, the original three-bedroom brick-and-tile house at 52 Kenrick Street had an auction guide of $2.25 million with listing agent John Kerr of Dalton Partners The Junction.
The property was sold on behalf of the family of late owner Faye Leong, who died at age 97 last year after owning the home for more than 60 years.
"We had 43 contracts sent out during the campaign and there were over 35 inspections," Mr Kerr said.
"The reason it held so much appeal was the location, being outside of the heritage conservation area, which allows them to known it down, it was a good-sized block and it had no easements.
"It suited a developer because you can have access off Ravenshaw Street and access off Kenrick Street and it's a block from The Junction [shops]."
Out of the 12 registered bidders, 10 were developers, including two from Sydney.
Two parties from Newcastle intended to either renovate the existing home or demolish it to rebuild.
Bidding opened at $2 million and climbed quickly, selling after 15 bids.
"When it got to $2.1 million, the next bid was $2.4 million, so it was a pretty bold bid and then it crept up from there," Mr Kerr said.
"In the end, it came down to two parties and when they got to $2.8 million, one person dropped out and the other person bid at $2.81 million and they got it."
It is understood the buyer plans to renovate the house or rebuild their "forever home".
Mr Kerr, who sold a similar property at auction at 12 Turnbull Street in April, said the result sat above expectations.
"Based on 12 Turnbull Street, which sold for $2.542 million, it went well above expectations," he said.
"It was a similar situation where we had developers looking at it however, the person that bought that at auction is going to bowl it over and build his forever home.
"By comparison, it was 40 square metres bigger than this one, but it wasn't on a corner block and both were outside of the heritage conservation area.
"I sold that one in April and the market was probably a bit better then, so it does go against the grain in that we are supposedly in a market that is a little bit tricky at the moment and you don't know what to expect, but it was really well received."
According to Cotality, 11 homes were scheduled to be auctioned across Newcastle and Lake Macquarie in the week ended September 6.
Preliminary results show the region recorded an auction clearance rate of 90.9 per cent.
In Carrington, a three-bedroom cottage on 265 square metres with an architect-designed rear extension went to auction at 29 Victoria Street.
Listed with a guide of $1.3 million to $1.4 million through Kiah Lawford of Walkom Real Estate, the auction drew three registered bidders.
Bidding opened at $1.301 million before the home sold for $1.425 million.
Cotality records show it was previously transacted in 2014 for $515,000.
The result contributed to a strong week across the region, with Ray White Newcastle Lake Macquarie recording a 100 per cent clearance rate at its first in-room auction event.
Among the successes was a long-held family home at 23 Warrah Street in Hamilton East, listed with a guide of $1.35 million to $1.4 million via agent Darren Penn.
Positioned on a 524-square-metre block, the 1930s brick bungalow featured original character details including high ornate ceilings, timber floorboards, fireplaces, and leadlight glass.
The auction attracted three registered bidders, with two actively competing.
Bidding opened at $1.3 million and pushed through to a $1.505 million sale, going to a family who recently sold their home in Carrington.
"It's a 1930s bungalow style and quite original inside, so it needs some TLC but it's in a good street and a tightly held pocket of Hamilton East," Mr Penn said.
Commercial property also attracted competitive bidding.
Listed with agent Lee Follington, 122 Ocean Street in Dudley sold after attracting strong interest from local buyers.
Offered for the first time in almost 40 years, the property has two established tenancies, including Paperboy Espresso.
After an opening bid of $800,000, it sold for $1.09 million.
Before the in-room event, Mr Penn also secured a sale for an early 1900s two-bedroom cottage at 75 Railway Street in Cooks Hill.
Positioned on a compact 139-square-metre block, the property had an auction guide of $1.15 million to $1.25 million.
"It was unique home in the respect that it wasn't a home for everyone because it was tightly configured," Mr Penn said.
"Despite having plenty of interest in it, it was the sort of home that would only suit one or two types of buyers.
"We had 68 inspections, 88 online enquiries and three offers during the campaign, but it was more suited to a downsizer or someone who wanted to be in the middle of Cooks Hill."
The home sold before auction for $1.25 million.
According to Cotality, it was previously sold for $462,000 in 2008.
Mr Penn said homes listed with realistic price guides are still attracting buyers.
"I'm finding it's an unusual market because as much as it's tough, and there's no question it's tough, if you are pricing right and adaptive to the market, there is still plenty of activity out there," Mr Penn said.
"You also have to work harder on the listings.
"We were opening the property on Railway Street four or five times a week to get that volume of buyers through the home."
