A dilapidated house in Sydney’s inner west has sold for $2.4m at auction, stunning property market experts.
The three-bedroom, one-bathroom home sits on 570sq m of land in Enfield, about 14km west of Sydney’s CBD, in a state of disrepair.
The property was advertised as an opportunity to build a dream home, renovate or reconstruct in a “village-like pocket of the inner west”.
Richard Matthews Real Estate sales executive and auctioneer Matthew Blackmore called the sale on Saturday, with the house fetching $420,000 over reserve.
He did not expect the property to reach anywhere above $2m, as it required a lot of work to become liveable.
“It was literally the craziest auction I have ever seen,” he said.
Mr Blackmore said the house was located on The Parade, the best street in Enfield, and because there were mostly established homes in the area, there were not many land value opportunities for buyers.
About 300 people attended the auction, with four people bidding until the last $20,000.
Mr Blackmore also sold a house across the street that reached $200,000 above reserve, but it was a double-brick liveable home and the buyers moved straight in.
“For a house that you can’t move straight into to only sell for a few hundred thousand dollars less is crazy,” he said.
Some people at the auction were hoping to pick up the home for the bargain price of $1.5m, but Mr Blackmore said about half the bidders were bidding more than $2m.
Because there is no supply in the current market, Mr Blackmore did not expect property prices would come down anytime soon.
“If there were another 10 houses like that they would be sold tomorrow,” he said.
“Good land in good suburbs are doing really well.”