Why two neighbouring, run-down houses are on the market for $4million EACH – and it has NOTHING to do with being in a desirable location
- Two neighbouring houses in Sydney’s west are each on the market for $4million
- Homebush bungalows selling for same price as luxury homes in nicer suburbs
- Selling agent Edward Rojas said sellers could get higher price if area rezoned
Two neighbouring, run-down houses are each on the market for $4 million despite hardly being in an ultra-desirable location.
The 1930s bungalows at Homebush in Sydney’s west are already surrounded by high-rise apartments, making them prime pickings for a developer.
The four-bedroom houses on Loftus Crescent are each selling for far more than Sydney’s median house price of $1.186 million, CoreLogic data showed.
For that kind of money, $4million can buy a very nice, four-bedroom home near the ocean at Avalon on Sydney’s Northern Beaches or a four-bedroom luxury house at Woollahra, in the eastern suburbs.
Two neighbouring rundown houses are each on the market for $4million despite hardly being in an ultra-desirable location
The Homebush houses, near a train station, are being marketed as having ‘multi-storey development potential site’.
Unique Property Real Estate sales agent Edward Rojas, who is selling both properties, said 70 people, mainly developers, had expressed interest in the houses, with interest rates at record lows.
‘A lot of developers are just buying them to knock it down and develop,’ he told Daily Mail Australia.
‘Most people in this market, due to interest rates, are driven by greed.
The 1930s bungalows at Homebush in Sydney’s west are already surrounded by high-rise apartments, making them prime pickings for a developer
‘It’s not about housing anymore, it’s about money.
‘I can show you a client list of 70 people that would like to buy the property.’
While $4 million sounds expensive, Mr Rojas said the new owners could get an even higher price if Strathfield council rezoned the area to allow 12-storey apartment towers, instead of the existing eight-storey limit.
‘It makes it look expensive but it can make it look very cheap,’ Mr Rojas said.
The four-bedroom houses on Loftus Crescent are each on the market for $4million – a level significantly higher than Sydney’s median house price of $1.186million, CoreLogic data showed
‘The land and the price of that land is driven by the floor space ratio the council will allow.’
The sellers, who have lived there for 25 and 30 years, were prepared to wait to get a higher price, having put the houses on the market four months ago.
The sales are contingent on the council giving development approval for an apartment tower.
Even without developers circling, Sydney’s median house prices has surged by 15.1 per cent since January, with three of Australia’s big four banks offering fixed mortgage rates of less than 2 per cent.
Unique Property Real Estate sales agent Edward Rojas, who is selling both properties, said 70 developers had expressed interest in the houses, with interest rates at record lows
In Budget papers released on Tuesday, the NSW Treasury predicted the surge in house prices would peak ‘around late-2021’.
‘As higher prices encourage more owners to sell, this will work to limit house price growth over time,’ it said.
‘In addition, higher prices are expected to price out more potential buyers, weighing on demand.’