It’s an area that was best known for all-night partying. But on Saturday, a two-bedroom apartment in the Kings Cross end of Potts Point sold for $1.63 million – $230,000 over reserve – proving it’s an emerging residential hot spot.

The auction was one more than 500 on Saturday. Agents say the lockout laws have changed the game in this part of Potts Point, with buyers from the “Paris end” of the suburb moving in along with upgraders from other areas.

With 15 contracts out and nine registered parties, five bidders battled it out for the art deco flat at 614/13-15 Bayswater Road, with the bidding starting at the $1.4 million reserve. 

Auctioneer David Gray at 614/13-15 Bayswater Road, Potts Point. Photo: Fiona Morris

The bids rose quickly in $50,000, $25,000 and $5000 increments between several parties. It was all over in less than 10 minutes. Michael, 35, an upgrader from Zetland who didn’t want to disclose his surname, emerged victorious.

“I know that a smaller place sold for $1.6 million up the nicer end of Macleay Street, but I think there’s plenty of potential for growth in this part of the suburb now with the lockout laws,” Michael said.

The sales agent, Brigitte Blackman of LJ Hooker Inner City, agrees. “This is certainly a changing market around here,” she said. “So many people are looking to move in.”

The Hampton at 13 Bayswater Road, Potts Point. Photo: domain.com.au

The 135-square metre flat in the refurbished art deco block The Hampton had plenty of appealing features, including a modern kitchen, high ceilings, polished floors and a balcony with north-easterly views to Rushcutters Bay.

Along with the older-style units, developers, too, are moving in to capitalise. Greenland is building the 19-storey Omnia on the site of the Mercure Hotel.

CBRE director residential projects Ben Stewart has only a dozen units left. He still has an $8 million three-bedroom sub-penthouse available, though the penthouse went for $11 million on launch day last November.

The living room at 614/13 Bayswater Road, Potts Point. Photo: domain.com.au

“The lockout laws have certainly improved confidence in that part of Potts Point,” says Stewart.

Buyers in Omnia were mainly locals upgrading from earlier developments in the “Paris end”, such as Mirvac’s Ikon or the Gazebo. “They can see what’s happening now up the other end of Potts Point and they want to be part of it,” Stewart adds.

He is preparing to launch another new development – Hensley Hall at 37-41 Bayswater Road – which will be a “very high-end” block of 44 apartments ranging from $800,000 one-bedders up to $3.5 million three-bedders. He’s expecting it will attract strong interest again from those upgraders.

The dining area and kitchen at 614/13 Bayswater Road, Potts Point. Photo: domain.com.au

The lockout laws were also offered as one of the reasons that a property in Challis Avenue, Potts Point, smashed records when it sold in April.

​The 1890s Victorian Italianate terrace known as Saraville – at 29 Challis Avenue – sold for $13 million, the highest price ever for a terrace in Australia. It had been dramatically renovated by its owner Heidi Onisforou since she bought it for $5.25 million only two years ago. 

In other auctions on Saturday, a two-bedroom terrace on a 59 square metre block at 4 Rennie Street, Redfern, sold for $1.11 million. Owners Alex Swarbrick and partner Rachel Brebach and their children Indira and Felix, who appeared on the cover of Saturday Domain this week, were overjoyed.

An artist’s impression of the 19-storey luxury block Omnia. Photo: Supplied

“We’re super happy – it’s really great,” Swarbrick said, who upgraded to a bigger home in nearby Chelsea Street. There had been five active bidders for the property. “An investor bought it, who can expect to rent it out for between $700 or $750 a week,”  Charles Touma, of Belle Property Surry Hills, said.

At Annandale, a renovated freestanding house at 7 Clarke Street attracted heated bidding from six of the 21 parties who registered to bid. The 350-square-metre garden block with side-lane access and a three-bedroom Federation house sold $265,000 over reserve for $1,815,000 through Tina O’Connor and Harry Psaradellis from Ray White Annandale.

It last traded unrenovated in 2010 for $1.07 million.

Alex Swarbrick and partner Rachel Breback, with children Indira,10, and Felix, 6, outside the two-bedroom terrace that sold for $1,110,000 on Saturday. Photo: James Alcock

In Cremorne, over 200 groups inspected a four-bedroom bungalow at 2 Benelong Road and 20 took contracts before it sold for $2,112,000. Selling agent and principal of McGrath Neutral Bay Piers van Hamburg said the buyers, who paid $62,000 over reserve, were upsizing from a Cremorne townhouse and the sellers planned to stay in the suburb.

In a new development launch in Epping on Saturday, $41 million worth of apartments sold in the second stage of the Poly Horizon project on the corner of Oxford and Cambridge Street. There were 100 apartments on offer and more than half sold.

Poly’s marketing director Philip Best said he believed the RBA interest rate drop has helped continue to bolster the Sydney property market.

2 Benelong Rd, Cremorne sold under the hammer for $2,112,000 through McGrath Lower North Shore. Photo: domain.com.au

Designed by architects PTW, the landmark $344 million mixed-use precinct will eventually comprise of 501 apartments across one 22-storey tower, one 21-storey tower and a third low-rise tower.