A developer paid nearly double the reserve for an ordinary suburban house in Sydney's insane property market

This $2.85 million Gladesville house will be knocked down for redevelopment .

1 Stansell Street, Gladesville, is described by the agents as “a rare find”. The four bedroom, single story brick home sits on 714.5m2 in a mixed use zone between an unit block and service station, which in real estate speak made it “only moments from all major shops and roads”.

It currently rents for $800 per week.

The Professionals Ermington described it as a “highly sought after opportunity” and were proved correct Saturday when it sold for $2.85 million – a staggering $1.1 million above the reserve.

Agent Paul Tassone told Domain.com.au that around 300 watched in disbelief as 28 registered bidders chased the property.

“The buyer was a developer who plans to rent it out before eventually redeveloping the site,” he said.

Domain reports a clearance rate of 84% among the 628 auctions in Sydney on Saturday.

Among the other properties that suggest the market is a long way from cooling were:

  • A duplex in Moore Street, Coogee, went for $1.43 million – $530,000 above the reserve.
  • A 4-br house on Belmont Road, Mosman, which will be rebuilt as two homes, sold for $2.235 million – $685,000 above reserve.
  • A 1-br worker’s cottage in Little Bloomfield Street, Surry Hills, bought by a first home buyer for $840,000 – $90,000 above reserve.

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