A five-bedroom “super luxury” home in inner Sydney has sparked controversy after selling for $8.6 million, with foreign investors blamed for driving up prices.
The luxury home at 31 Augusta Street Strathfield, about 12 kilometers west of Sydney’s financial district, was auctioned at the end of February.
The five-bedroom, six-bathroom property broke the suburban record for a 700 square meter block following a bidding war between five registered parties.
Belle Property Strathfield estate agent and sales director Norman So shared a 40-second clip of the auction on Instagram on February 24, showing the final call and the happy new owners.
But the images went viral on social media platforms with many claiming Australia’s property market was flooded with foreign investors.
A video of the record-breaking auction (pictured) was shared on Instagram and received a flood of negative comments, with many claiming the buyer was a foreign investor and the reason Australia’s housing crisis has worsened.
“This is why people born in Australia can’t afford housing,” one person commented.
“Most of the people buying are Chinese which is a disaster for all Australians,” a second person wrote.
A third added: “Casual racism is disgusting.
‘[But] “It should not be overlooked that China’s foreign owners are, in fact, creating a huge problem for Australians, and the government should do something about it.”
However, So dismissed assumptions that the winning buyer was a foreign investor.
“I know for a fact that the buyer is a local,” Mr. So said. news.com.au
‘The buyer practices the medical profession. They don’t have time to buy the land, tear it down and rebuild it.’
“I posted it because I am a local agent in the area, I was obviously proud of the work my team did to select the property, analyze the marketing and generate interest.”
So said $8.6 million “may seem like a lot,” but it was the result of the buyer’s “accumulation of wealth.”
He explained that the typical buyer of a high-end property would have a household income of approximately $1 million and would already have an extensive property portfolio.
The house at 31 Augusta Street, Strathfield set a suburb record for a 700 square meter block after selling for $8.6 million.
The luxury home features five bedrooms and six bathrooms, featuring concrete, Italian marble, European oak, travertine and limestone (pictured).
So added that buyers are typically between 55 and 65 years old and are on the path to purchasing their forever home.
The real estate agent was proud of his team for the incredible result after selling the property in 2020.
“Basically it’s eastern suburbs prices for Strathfield. “It was important to my supplier because this is the first super luxury home selected for Strathfield and sold on the market,” Mr So said.
The property originally had an old double brick house that was owned by the same family for over 70 years.
However, in 2020 the property was sold to luxury homebuilders Empirical Developments for $2.92 million, who tore down the house and rebuilt it for an additional $1.5 million.
The new double-brick home features concrete elements, Italian marble, natural European oak, travertine, limestone, three-meter-high ceilings, a tropical garden and a poolside terrace.
Despite the mammoth price tag of $8.6 million, the luxury home falls short of Strathfield’s overall suburb record.
The property was previously sold in 2020 to luxury homebuilders Empirical Developments for $2.92 million.
In 2023, a house at 26 South Street sold for a whopping $12.1 million.
It comes after another auction sparked controversy when an Asian woman emerged as the winning bidder, leading many to mistakenly believe she was a foreign investor.
Sydney auctioneer Tom Panos posted images from an auction of a family home at Georges Hall in Sydney’s south earlier this month.
“Look how this Asian lady scares away all the Lebanese bidders,” he said.
Panos added: “Never mess with a determined Asian woman.”
However, shortly after Panos shared the video on social media, the Asian woman was attacked by hundreds of online trolls.
Panos dismissed those who assumed the woman was a foreign buyer, telling the WhatsNew2Day that Australian laws made foreign investment in Australia impossible.
He added that the woman was successful because she simply wanted the house more than her competitors and had more to spend.