An old and run-down house on Palmerston Avenue in Bronte has sold for a figure that surprised many in the crowd, selling for $835,000 more than its reserve price at auction last month.
The three-bedroom property at 41 Palmerston Avenue has stood empty for years, missing its front door and showing clear signs of wear. It had not been offered to market before, yet the promise of land close to Bronte Beach brought buyers in strong numbers.
Auction day saw keen interest from builders and small developers who were drawn by the property’s location on a 325-square-metre block of land within a short walk of the beach. The home’s condition clearly did not put bidders off.
Strong Bidding in Bronte
According to the agent, 12 buyers registered for the auction and six of them actively competed, most described as owner-builders or small scale developers.
Bidding began at $2.7 million and rose steadily in increments until reaching $3.6 million. From there the pace slowed as the competition pushed the final figure higher.
The property was sold for $3,835,000, compared with a reserve of $3 million, which had also been the campaign guide.
The winning bidder was described as a father ready to build a new home with his son. Ray White Eastern Beaches selling agent Angus Gorrie said the buyer was “very happy” with the result and looking forward to the project.
Broader Auction Context
The Palmerston Avenue sale came during a busy week on Sydney’s housing market, with many properties taken to auction across the city. Domain reported that out of 965 results collected by evening, the preliminary clearance rate sat at about 62 per cent, with a number of auctions withdrawn and counted as unsold.
While Bronte homes in prime condition already attract strong interest, this result highlights the ongoing appetite for land in the eastern suburbs, even where the existing house has seen better days.
For many locals, this sale will underline how tightly held real estate remains here and how quickly land close to Bronte Beach can drive competition and strong prices.
Published 1-December-2025
