Uninhabitable terrace sells for $3m
A Victorian-era terrace with holes in the floor, torn ceilings and other damage requiring about $1 million in repairs sold under the hammer Saturday for just under $3 million.
The jawdropping price for the uninhabitable house on Glebe Point Rd in Glebe was a shock for the sellers who set a reserve price of $2.2 million.
The hammer dropped at $2.99 million and the vendors pocketed $790,000 over their reserve.
There were 15 bidders registered for the auction with sales agent Matthew Carvalho of Ray White-Surry Hills.
Bidding opened at $2 million and increased to $2.45 million in a single bid. It then went up in increments of mostly $100,000. Seven of the registered parties made bids.
Mr Carvalho said bidders came into the auction prepared to make "knockout bids" but none of them scared away the competition, who came prepared to dig deep into their pockets.
The price was remarkable given the five-bedroom terrace would cost an estimated $1 million to restore, Mr Carvalho said.
"It has good bones. Structurally it is strong, it just needs a lot of work and that spooked a lot of the people coming through the open (homes)."
The buyers were understood to be a group of builders who will restore the home.
Auctioneer Clarence White said the price was surprising but not the level of interest.
"It's a big terrace, needs a full renovation. People love these projects. I had a good feeling about it … and I am not ruling anything out in this market. Anything is possible at the moment," Mr White said.
The terrace was once the home of explorer Sir Douglas Mawson and was up for sale for the first time since 1975.
Built in 1882 as part of the landmark Palmerston Terrace row, Sir Mawson and his family lived their in the late 1890s.
Sir Mawson was known for leading the historic Australasian Antarctic Expedition which explored the largely uncharted Antarctic coast south of Australia between 1911 and 1914.
During the trip, Mawson's team discovered the first meteorite in Antarctica and enabled Australia to claim 6,475,000 square kilometres of the continent.
Mr Carvalho said a fully renovated home in the area would probably be worth $4 million.
"The market is just so strong," he said. "What seems high now might not be 12 months down the track."
Originally published as Uninhabitable terrace sells for $3m