Second round of Mr Fluffy blocks sold at auction

Three northside Mr Fluffy blocks were sold under the hammer on Thursday night, with one property selling at a price 68 per cent higher than its unimproved value.

A fourth property was sold following negotiations soon after the event, wrapping up the Land Development Agency’s first round of public auctions.

Two thirds of the 42 registered parties vying for the five remediated blocks in Campbell, Downer, Scullin, Fraser and Macgregor were families looking to build in an established area.

Close to 170 people crowded into the Belconnen Arts Centre to watch a 652-square-metre block at 30 Swinden Street in Downer sell for $592,000 under the hammer, the most expensive sale of the night.

A 890-square-metre block at 118 Osburn Drive in Macgregor fetched $392,500, while 695 square metres of land at 8 Parer Place in Scullin sold for $398,000.

The most anticipated block of the night, a 964-square-metre plot at 51 Holmes Crescent in Campbell, passed in at $990,000 and was under negotiation as of 7.30pm Thursday.

The largest property, a 987-square-metre block at 30 Nott Street in Fraser, passed in at $440,000 but was sold soon after the auction for $455,000.

One of the successful bidders was a first home buyer.

Thursday night marked the second half of the first round of Mr Fluffy auctions, with nine of the 10 properties now sold.

Tuesday night’s southside auctions attracted 30 registered bidders and a crowd of about 120.

Four of the five southside blocks sold under the hammer. The most expensive was a 1059-square-metre block at 74 Darwinia Terrace in Chapman, which fetched $610,000.

The largest block, a 1459-square-metre site at 83 Doyle Terrace in Chapman, was passed in and later sold for $675,000.

The prices of the nine sold blocks were between 12 per cent and 68 per cent above each block’s unimproved value, including 18 Parer Place, Scullin, at 12 per cent above, and 118 Osburn Drive, Macgregor, at 68 per cent above.

Independent Property Group project marketing director Wayne Harriden said the five northside blocks had attracted strong interest from the beginning but enquiries had surged over the past week.

“There has been interest from families seeking to buy and build in an established area as well as builders,” Mr Harriden said.

“It is not only a block that is being sold, but also the opportunity to move into an established community.”

Mr Harriden said he thought the first round of sales were “good value”.

“I think the prices paid on Tuesday night have made people sit up and pay attention,” he said.

More than 1000 homes across 56 established Canberra suburbs have been identified as Mr Fluffy homes and demolitions will take place over the next few years.

Owners of 690 of the houses have taken up a first right of refusal and will return and rebuild on their remediated blocks.

The reserve price on each block at auction will not be less than the amount offered to the former owners.

Minister for Planning and Land Management Mick Gentleman said the ACT government had committed more than $740 million to the Mr Fluffy saga.

After the resale of the blocks, the cost to the Canberra community would still be more than $400 million, he said.

Land Development Agency deputy chief executive officer Ben Ponton said there would not be an overall profit from the sale of the remediated blocks.

“While the resale prices are strong it is important to understand that the territory actually lost money on all these blocks tonight [Thursday night] and on Tuesday night,” he said.

“The sale of these blocks is an important next stage of the government’s response to the Mr Fluffy issue and will enable rebuilding to occur in areas formerly affected by this legacy issue, as well as support the net cost of this response to the community.”

The Land Development Agency, the Asbestos Response Taskforce and agents will review the first phase of the Mr Fluffy sales, with the next round of auctions due to begin in May.

Auction results

18 Parer Place, Scullin (695 square metres): $398,000

30 Nott Street, Fraser (987 square metres): $455,000

30 Swindon Street, Downer (652 square metres): $592,000

51 Holmes Crescent, Campbell (964 square metres): Passed in, under negotiation

118 Osburn Drive, Macgregor (890 square metres) $392,500