A LENGTHY battle at auction saw two buyers fight it out across 56 bids for a run-down duplex in New Lambton.
Despite requiring major renovations, the two-bedroom property at 34 Portland Place drew strong interest with eight registered parties at the auction on Saturday.
Crawford Real Estate selling agent Phil Swan said the majority of buyers were investors, including builders who recognised the potential of the property which was within 50 metres of New Lambton's shopping village.
Market feedback ahead of the auction priced the duplex with a guide of $550,000, however, the property sold above expectations for $621,000.
The auction began with an opening bid of $400,000 from a first-home buyer and spirited bidding from two buyers led to a total of 56 bids.
The bidding went up in increments of $25,000 and slowed down to increments of $1,000 before it was sold under the hammer.
"A couple of the bidders were knocked out pretty early and two bidders went at it for the last 30 or 40 bids," Mr Swan said.
"One was trying to slow it down with $1000 increments and the other was trying to take them out."
Mr Swan said the buyer was a young builder who planned to renovate the property with the option to either rent it out or live in the property himself.
"It was an older place that was ripe for renovation," Mr Swan said.
"The location was always going to sell it being within 50 metres of the IGA and village, it was the perfect spot for older people or downsizers but it needed a lot of work.
"For a builder to be able to buy it and do it themselves made perfect sense."
There were 29 auctions scheduled across Newcastle and Lake Macquarie in the week ending October 29.
According to CoreLogic's preliminary results, the region's auctions recorded a clearance rate of 73.1 per cent, down from 85 per cent the previous week.
A three-bedroom home in original condition at 103 Bryant Street at Adamstown drew eight registrations at auction.
Attracting a mix of first-home buyers and investors, four of the parties actively bid in the auction which opened at $750,000.
The property sold to an investor for $905,000.
"It went above all expectations," Green St Property selling agent Anne Alexander said.
"We had a guide of $750,000 and we thought it might go for somewhere between $750,000 to $815,000 and it went well above its reserve.
"I think we are going to see more of that because there's just not enough stock on the market at the moment."
Strong numbers also turned out to Global Property's auction of a three-bedroom home in original condition at 2 Seaman Avenue in Warners Bay.
The auction drew 10 registered parties, including a handful of last-minute registrations.
"Seaman Avenue is one of those streets that is really sought after and always seems to sell well," listing agent Anthony Bird said.
"There are a lot of people who buy there with a view to do a knockdown rebuild because it is quite close to the water.
"Houses along the street are quite modern homes that have sold either side of $2 million, so this particular property was mostly land value."
Four registered bidding actively took part in the auction which had a guide of $800,000 and the property sold under the hammer $870,000.
At The Hill, a renovated townhouse listed with Mavis Property Co at 7/4 Lemnos Parade drew four registered bidders at auction.
The bidding opened at $900,000 and the property sold for $1.245 million.
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