Dad Buys $2.23 Million Terrace House for University Student Son in Sydney

A university student will reside in a $2.23 million terrace home in one of Sydney's most desirable suburbs, thanks to a significant purchase by his father.

The property, located at 59 Hansard Street in Zetland, a former industrial area now considered a trendy suburb in Sydney's inner-south, features four bedrooms, two bathrooms, and a double garage. The home offers 135 square meters of internal living space, noted as being on the smaller side for Australian standards. However, the property's narrow block is long, and a second story addition at the rear contributes to its spaciousness relative to its land size.

The residence went to auction last week with a price guide of $2.1 million, as reported by the Sydney Morning Herald. Three parties registered for the auction, with all participating in the bidding. Two of the registered parties were young couples looking to expand their existing homes, while the third was an investor.

Bidding commenced at $2 million. The eventual buyer secured the property by increasing his own bid, initially offering $2.19 million before raising it to $2.2 million, and finally settling on $2.23 million.

David Smith-Cameron from BresicWhitney, the real estate agency handling the sale, stated that the sellers, who have relocated to London, had purchased the home for $2.03 million in 2021, thus realizing a $200,000 profit. "They had higher initial expectations, but they were prepared to meet the market to get the property sold," Smith-Cameron commented.

Smith-Cameron also provided details about the buyer, identifying him as the father of a university student and confirming the property was purchased as "an investment the son will live in."

The two unsuccessful bidders at the auction are part of a broader trend observed in Sydney's property market, according to Smith-Cameron. He noted that a significant number of potential buyers are currently couples and families seeking to upsize their homes. "They're the only buyers at the moment who are happy to take the hit and sell… to basically be able to upsize and capitalise on the lower sale prices on the things they're buying at higher price points," he explained.

The Zetland home was among 1,029 properties scheduled for auction in Sydney during the past week. Domain reported that 51 percent of these auctions were successful, with 232 properties withdrawn before the auction began.