The two-bedroom home on 255sqm, which was part of a row at 230 Frome St, went for $744,000 on the weekend.
Selling agent Sean Bennett of Mayo & Co Real Estate said it attracted plenty of attention during its marketing campaign, including from interstate investors and overseas expats looking to return to Adelaide in the future.
“The cottage market in Adelaide’s CBD is really strong marketplace these days,” he said.
“People prefer to have a house rather than an apartment in the City and they are starting to get thin on the ground. They don’t come up that often, especially over the eastern side of the city.”
Just two registered bidders came forward on auction day — a factor Mr Bennett attributed to tighter bank lending restrictions.
The home was advertised without a price guide but he said the end result was “excellent”.
“There were a couple of sales in the group over the last two years at $680,000 and $730,000 so we were absolutely happy,” he said.
Adelaide’s City’s median house price is $571,000, according to CoreLogic.
“For a two-bedroom cottage with heritage listing on it to get close enough to three quarters of a million dollars is excellent,” Mr Bennett said.
He said there had been more buyers waiting in the wings for the property, who still needed to organise finance and were therefore unable to bid at auction.
“I’ve probably had four phone calls already from people saying they hope it hasn’t sold,” he said Monday morning.
“We had more buyers waiting it who weren’t able to bid.”
Mr Bennett said tighter financial controls from the finance sector were reducing numbers of people able to bid and “slowing down” the auction process generally.
But auction campaigns were still an effective way to generate interest and sell a home within a short time frame
“At the end of the day we achieved an excellent result for the vendors — they have that unconditional contract — they know it’s sold and they can move on,” he said.
“It’s sold in 30 days — that’s the benefit of going to auction.”
The do's and don't's of buying property1:22
Love it or List It's Andrew Winter gives some handy tips for buying at both an auction and private sale.
The Frome Rd property had been renovated and extended in the 1970s and Mr Bennett said it was in perfectly liveable condition, but could arguably have benefited from further updates.
The floorplan included a downstairs cellar and an open-plan lounge/kitchen/dining area, overlooking a neat, paved rear yard.
Heritage features included floorboards, tiled fireplaces, leadlight and high ceilings. The property also included a carport.