Melbourne auctions: Unfinished, unliveable townhouse sells for more than $1 million
A half-finished renovation did not deter buyers on a sunny Saturday in South Melbourne, with a young investor shelling out $1.003 million for a home the selling agent described as in “wrack and ruin”.
The three-bedroom townhouse at 35A Park Street is in various states of disrepair – none of the bathrooms is finished, and the floors in the top two bedrooms are half-tiled.
By evening, Domain Group had recorded a 74.6 per cent clearance rate from 516 reported results.
Buxton Port Phillip director Rohan White did not know what caused the former owner to abandon the project.
“Something’s gone wrong, and they’ve run out of money along the way,” he guessed. “I’ve never had something in this state of disrepair. You get unrenovated, but this is unusable.
“You couldn’t use either bathroom upstairs. I’ve never had that sort of level of wrack and ruin.
He said he was not acting on behalf of the owner shown on public records, but would not disclose who was selling the property or the reserve.
Three bidders participated in the auction. It began with an offer of $800,000, then reached the quoted price of $900,000 with one bid. It sold to engineer and DJ Joel Kuperholz, who plans to use the home as an investment once he completes the renovation.
“[It’s my] first property. It was location, proximity, and opportunity,” he said.
Mr Kuperholz wasn’t put off by the work needed to fix up the townhouse.
“For me, I saw it as a cosmetic sort of thing,” he said. “It’s doable for me with my parents managing it as a construction project.
“But we’ve just renovated, so I’ve got friends who are in construction and stuff.”
Earlier, in East Melbourne, a unit in a building with a structural defect sold for $152,500 above the reserve.
A crack runs up one side of the block, and the exact cause is unknown.
During the auction of 1/126 Albert Street, Biggin and Scott auctioneer Andrew Crotty said it was thought there might be water under the foundations, and further work was needed to determine the exact cause and repair it. But $140,000 had already been set aside by the body corporate to deal with the issue.
Undeterred, six bidders contested the auction. The investor offloading the two-bedroom unit set the reserve at $500,000, the bottom of the quoted price range. It sold to a 23-year-old woman, assisted by her parents, for $652,500.
Listing agent Talia Besser said pricing the unit with the defect in mind and its East Melbourne location had helped to move the property.
“We gave as much information as we could. We tried to be transparent about the situation and what’s happening next,” she said. “So, I think that’s what got a few buyers on board.”
The unit was large and was in a smaller, walk-up block, which Ms Besser said was a popular style.
“If it weren’t in East Melbourne, we would still have [sold it]. It’s an older-style apartment as well, and there are low stock levels,” she said. “It’s a highly sought after pocket.
“I was confident in the sense that I was hoping to get two or three bidders, but to get six was a great result.”
Elsewhere in Brighton, a stylish five-bedroom home passed in with no bids, despite keen interest through the auction campaign.
O’Brien Brighton officer in effective control Robert Eierweis passed the home in on a vendor bid of $1.9 million. He was quoting a price range of $1.9 million to $2.09 million.
Mr Eierweis said four buyers were still vying for 40 Burrows Street, behind closed doors.
“I’ve just spoken to a few of the buyers, and a few things have come up,” he said. “So, I’ve got four buyers’ appointments this afternoon, with the four of the hottest buyers I had. I’m hoping it will be sold this afternoon.”
Mr Eierweis said the home’s size, location and easy maintenance made it popular.
“It’s a five-bedroom home, one block to Church Street and it’s a five-minute drive to the beach. And it’s a low-maintenance block,” he said.
In Parkville, a tiny one-bedroom townhouse had a competitive auction, with four buyers contesting.
The home came on a title with 70 square metres of land, so it had good potential for capital growth, Core agent Alana Kuo said.
She said buyers had found 21/18 Lennon Street surprisingly spacious once they inspected it.
The Auctioneer’s Jason Lien said the home was well contested because it was hard to find properties with such ad affordable price tag.
Ms Kuo gave it a price guide of $285,000 to $310,000.
“It’s so close to the city, in Parkville. So close,” Mr Lien said. “The owners lived there for 11 years and they’re starting a family which is why they’re selling.
“It was such a rare piece of real estate in my opinion, in an affordable price range.”
He said he was surprised by the buyers’ enthusiasm.
“Because the quoting range and the price was so affordable, we took $5000 bids,” said Mr Lien. “But it was the buyers who upped the ante to $10,000 bids.”
He sold the home to an interstate buyer for $345,000, more than 10 per cent more than the reserve.
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