This home is set to stand no longer after a young family bought the property 83 Westgarth St, Northcote to build their dream home.
A DILAPIDATED Northcote home’s impressive $1.735 million sale was a bright light in an otherwise sluggish week of auction action.
The three-bedroom million-dollar dump at 83 Westgarth St featured pink walls, blue cupboards and peach ceilings and had two bidders push the property $185,000 past reserve.
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The three-bedroom house had colourful, dated and dilapidated interiors.
The property sold for $1.735 million.
Advantage Property Consulting director Frank Valentic said a buyer who planned to knock down the property and rebuild on the site outbid a renovator looking to flip the home.
“It was a really rundown house on 658sq m of dirt, it worked out to $2637 a square metre which is quite up there,” Mr Valentic said.
“It didn’t even have a hot water system and there was no heating in there.”
Hocking Stuart agent John Pasceri said the buyers were a young family from Fitzroy drawn to the land size and location.
“It was a very quick auction that started with a $1.5 million bid and there was no need for a halftime break,” Mr Pasceri said.
Almost seven hours after auction a deal was inked for 43 Wiltshire Drive, Kew, a home in the former Kew Lunatic Asylum.
The property is believed to have sold for a price within the $1.5-$1.65 million price guide.
A sedate deal for a Melbourne landmark was reached after negotiations lead into Saturday night following the property passing in at auction.
The four-bedroom home in a converted tower of the former Kew Lunatic Asylum at 43 Wiltshire Drive had a solitary bid of $1.4 million at auction placed by the eventual buyer.
About seven hours later a deal was inked for an undisclosed price understood to be within the $1.5-$1.65 million price guide.
Jellis Craig auctioneer Patrick Dennis said it was a great time to buy in the cooler market conditions.
“Three years ago when things were going gangbusters people were ultimately paying above the odds,” Mr Dennis said.
CoreLogic recorded a 52.1 per cent preliminary clearance rate from 914 auctions last week, a significant drop from last year’s corresponding 73.2 per cent from 1223 auctions.
If it holds at this mark when the final figures are in, it will be in line with December 2012 clearance rates, according to CoreLogic’s Victorian director Geoff White.
“We are not seeing it as a record-level low,” Mr White said.
“It’s a soft landing adjustment to the market. We have had some buoyant times since then (2012), when we saw clearance rates in the low 50s (per cent range).
“Melbourne is trying to find its level and the forecast going into next year is the market could see some improvement.”
Mr White said it wasn’t the usual factors such as interest rates and unemployment causing the downturn, but instead caution around the Royal Banking Commission which was impacting lending and credit.
“It is very much driven by lending, or lack thereof,” he said.
Despite the slump, Mr White said there was plenty of opportunity for both buyers and sellers.
“I’m confident to say if you’re out there buying there’s good opportunity and if you’re out there selling there’s a 50 per cent chance or better that you will sell on the day or soon after.”
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