In inner-city Sydney, a group of 19 individuals is preparing to auction a two-bedroom unit in Surry Hills, marking a unique collective investment amidst a challenging property market. The group, consisting of 18 women and one man aged between 48 and 70, are members of The School of Renovation, a program led by Bernadette Janson that aims to teach participants about property renovation and investment through hands-on experience.
The unit was purchased in December, with each member contributing a minimum of $50,000. The scheme operates through a trust structure, supported by legal and accounting oversight, allowing participants to engage directly in the renovation process and share in the profits upon sale. The participants come from a variety of backgrounds, including a retired Qantas pilot, interior designers, school teachers, bank employees, and photographers. Many are using this venture as a pathway to financial stability, particularly those recovering from relationship breakdowns, single women approaching retirement, and couples seeking to improve their retirement prospects.
The original timeline for the project anticipated a sale in May, but delays have pushed the auction date to the coming weekend in October. This postponement has complicated matters as the property market in Australia has undergone significant shifts, influenced by recent tax reforms introduced by the Labor government and a rising interest rate environment. These changes have contributed to a downturn in market activity, affecting auction clearance rates and overall demand.
Recent data highlights the difficulties facing sellers, with housing researcher Cotality reporting a preliminary clearance rate of 48.4 percent across major capital cities on Sunday, a figure well below historical averages. Auction volumes have also declined sharply, with recent weeks seeing a 418 percent decrease compared to the same period in the previous year. Although auction numbers have risen slightly in the past week, they remain substantially below typical levels.
Despite these headwinds, Ms. Janson remains optimistic about the sale’s prospects. She acknowledges that while the group may earn less profit than initially hoped, the experience offers valuable lessons about navigating market fluctuations and project challenges. The renovation cost approximately $110,000, and the group aims to secure around $1.25 million at auction.
The sale is being managed by Con Fotaras of Ray White Touma Taylor, who expressed confidence in the property’s appeal to buyers in the Surry Hills area. "Bernadette knows exactly what buyers want and delivers it," Mr. Fotaras said, suggesting the unit’s features and location will attract substantial interest despite current market conditions.
The auction is scheduled for Saturday, with the group eager to see their collective investment culminate successfully amid a shifting real estate landscape.