Home of Mugga Way murder passes in at auction

The Mugga Way home of murderer Luigi Costa was passed in at auction on Saturday. There were four registered bidders.

Costa, 72, killed his elderly neighbour Terrence Freebody in the home in July, 2012.

The Red Hill home was listed for sale by negotiation last year before being withdrawn from the market.

It was re-listed last month and the auction was held in rooms at the Peter Blackshaw Manuka office.

Mugga Way, known as “the golden mile”, is one of the most prestigious streets in Canberra.

Four properties sold on Mugga Way in 2015, the selling prices ranging from $1.45 to $2.4 million.

Number 149 Mugga Way sold for $3.4 million in September, 2014, recording the equal highest sales price for the year.

Mr Freebody’s home was sold for $1.88 million in 2013.

Real Estate Institute ACT spokesperson Craig Bright said it was not unusual for negotiations to continue after auction for properties in this price bracket. 

Mr Bright said a number of factors, from drug deals to suicides, could result in a home being declared a “stigmatised property”. 

Under ACT legislation and Australian consumer law, real estate agents must disclose when a property has a stigma attached to it that could affect the decision of buyers to purchase the home.

This includes the history of the property, such as major crimes taking place at the home, or the proximity of the home to other properties with such a history.

Costa was found guilty of the killing last April and sentenced to 16 years behind bars.

Mr Bright said he did not expect the home’s history would affect the value of the property, but it might narrow the field of purchasers.

“It comes down to personal feelings and beliefs,” Mr Bright said.

The six-bedroom home is set on a landscaped, 1442 square metre block. 

“Mugga Way is a prestigious address,” Mr Bright said.

“It’s a very good location and a good block of land with a lot of room for further development.”

He said market conditions should lead to a speedy sale of the property.

“The market is generally pretty strong and there is not a great deal of stock around.”