The crazy prices people paid for derelict houses this year

There is no greater litmus test of the strength of the property market than buyer appetite for derelict renovators, and 2020 was surprisingly no exception.

Despite a pandemic wreaking havoc on the real estate industry with a lockdown and doomsday forecasts at the outset, even COVID-19 did not stop buyers seizing on development “opportunities”.

Sydney was the fixer-upper-buying capital with a handful of astounding results recorded at auctions during the year. But no one seems to be in a great hurry to detonate, because according to their respective council websites, none has development applications submitted yet.

5 Napier Street, Malabar – sold in April for $1,365,000

SOLD - $1,365,000

5 Napier Street, Malabar NSW 2036

2

1

1

View property

First-home buyers from Pyrmont were the successful bidders on this rundown Malabar house, which hit the market for the first time in 57 years at the height of the pandemic.

The neighbouring development that towers over the humble property and nearby Long Bay Correctional Complex was no deterrent with six parties registering to bid on the property.

At the time, the buyers had no intention of doing a knock-down-rebuild of the property as their competition did; instead they hoped to renovate the place, according to the agent.

And, so far that seems to be true, with no development application lodge yet with Randwick City Council.

112 Surrey Street, Darlinghurst NSW – sold in June for $4,621,000

SOLD - $4,621,000

112 Surrey Street, Darlinghurst NSW 2010

5

2

2

View property

A family snapped up this decrepit terrace with a fallen-in ceiling and a collapsed balcony for an eye-watering $4,621,000.

The property attracted 16 registered buyers despite its state of disrepair.

BresicWhitney director Shanna Whitney said at the time while the marketplace was unpredictable, it was “indicative of the rarity and value of good real estate”.

“Even in uncertain conditions, the cream rises to the top,” Mr Whitney said.

While the buyers had experience in extensive renovations, no development applications have been submitted with City of Sydney Council.

1 & 5 Alexandra Lane, Glebe NSW – sold in September for more than $8.13 million combined

It was one of the largest land offerings in Glebe this year and was one of the more surprising results after these neighbouring blocks netted a combined $8.13 million during Australia’s short-lived official recession.

A crowd of more than 150 turned out to watch the two run-down freestanding houses go under the hammer.

They were part of the same deceased estate but ended up selling to two different parties by day’s end on a sunny Saturday in September.

Locals were shocked by the result given the buyers were merely purchasing the land and one person was annoyed enough in the crowd to key the selling agent’s car by the end of the auction.

Again, no development applications have been submitted for either property, according to City of Sydney.

97 Beresford Road, Bellevue Hill NSW – sold in November for $5.4 million

SOLD - $5,400,000

97 Beresford Road, Bellevue Hill NSW 2023

3

1

1

View property

More recently, a Bellevue Hill home owned by the same family for almost a century sold for a cool $5.4 million.

The vendors were relieved to walk away with the keys as they planned to restore the property to its former glory rather than knock it down.

Described as the “worst house in the best street” Michael Pallier, of Sydney Sotheby’s International Realty, said the sale price was well above expectations.

35 Stanley Crescent, Mount Martha VIC – sold in December for $1.4 million 

SOLD - $1,400,000

35 Stanley Crescent, Mount Martha VIC 3934

-

-

-

View property

After a prolonged lockdown in Victoria, a young couple bought this Mount Martha tennis court and vacant land for $1.4 million.

The property was listed with the hopes of fetching between $1.1 million and $1.2 million.

It ended up selling $100,000 above reserve on auction day – the same day the state government changed COVID-19-related rules to allow more buyers at auctions and inspections.

The couple were planning to to build a holiday home but development application has yet to be lodged with the Mornington Peninsula shire.

Aussie chief James Symond bought $13m knockdown-rebuild in Bellevue Hill

In June, it was revealed that Aussie Home Loans chief James Symond and his wife Amelia had bought a more than $13 million mansion in Bellevue Hill with plans already lodged to demolish and rebuild a designer residence for $9.5 million.

The dilapidated house on a double block of 1400 square metres was owned by the Packer family for almost half a century after Sir Frank Packer bought it in 1954 for £13,500. It was sold by his media mogul son Kerry Packer for $2.66 million in 2001, four years before he died.

The Rob Mills Architecture plans lodged with Woollahra Council by the Symonds in June showcased a design for a two-storey residence with a pool set above street level and basement garaging.

Council records show the plan was approved in October.