After 40 years in real estate, it’s a rare thing for Raine & Horne Double Bay Principal Ric Serrao to be surprised by a sale.

But that was certainly the case in late November, when a rundown Bondi apartment sold at auction for $7.1 million – a whopping $3.1 million over its reserve.

As a guide to how remarkable this sale was, the 3-bedroom unit at 5/17 Wilga Street, Bondi Beach needs considerable work.

Constructed in the early 1970s, the 5-unit building requires a major structural overhaul, and the interior of the apartment isn’t far behind.

However, as Ric points out, the property has a wealth of upsides including, most notably, an exceptional location.

A whole-floor position overlooking Bondi Beach

Occupying a rare penthouse position on the top floor, the whole-floor apartment has no common walls, boasts an oversized layout of 203 square metres, and features two balconies with sweeping views across Bondi Beach and Ben Buckler Point. Just as rare, the apartment boasts a highly sought-after double lock-up garage.

The cul-de-sac location gives the new owners direct access to the coastal walk to Bondi Beach, and close proximity to the cafes, restaurants and retail attractions of Australia’s most iconic beach strip.

Ric explains that the property was listed for sale for the first time in over three decades because the estate didn’t have the funds to pay the special renovation levy. However, this clearly wasn’t a factor that deterred would-be buyers.

“This is ‘AAA’ real estate,” says Ric. “When the building works are complete and the apartment is refurbished, the new owner will have an amazing asset – one that will prove to be an exceptional investment.”

A buoyant market

Raine & Horne Double Bay ran a savvy sales campaign for 5/17 Wilga Street, attracting 320 enquiries, with 15 parties registering to bid.

“It’s been a long time since I’ve seen 15 registered bidders at an onsite auction,” says Ric. “It’s testament to the strength of the market at present.”

He adds, “I was expecting the property to sell around the mid to high $4 million mark based on other apartment sales in the area. However, it is always difficult to put a value on views, and the winning bid was made by a family buying the property for their children to be able to stay in the area.”

More broadly, Ric says the $7.1 million sale reflects the buoyancy of the market at present.

“It’s that time of year when people are asking me if I’m starting to wind down for Christmas, but I’m winding up!”, he jokes. “The Eastern suburbs property market is just incredibly strong at present, and we are starting to see a rebound in investor activity also.

“I would absolutely encourage property owners who are considering selling to reach out to the team at Raine & Horne Double Bay.

“Don’t be concerned that the festive season means a quieter market, because right now we are achieving tremendous sales results with plenty of committed buyers keen to get into the market.”