A dilapidated house in western Sydney located beneath power lines and described as “unliveable” by real estate agents has sold for $1,590,000 at auction.
Bidders on Saturday were unable to even go inside the three-bedroom home in Ermington as it is completely boarded-up, but it sold for well above its $1.1 million guiding price and $1.3 million reserve – the confidential lowest bid that can be accepted.
The home is on a 1,088 square metre block and was advertised as the “perfect opportunity to build your dream home or redevelop”. All contents of the house, which has sat empty for the past six years, were also included in the sale.
Two bidders were on-site, but the auction for the deceased estate was eventually won by a phone bidder.
“If you look at the property itself, you can’t even get into the door because it’s locked up,” Auctioneer Charlie Powell of Apollo Auctions told realestate.com.au.
“We had four registrations which shows there is still some good competition in the marketplace. I find that interesting with interest rates and current world events.”
Lead agent Rosalie Gordon from Planet Properties Croydon said she was “really sceptical about what people would pay”, due to the power lines overhead, which she described as an “encumbrance” on the land.
She said the winning bidder was an investor who plans to build a house.
The higher-than-expected sale price came despite property market uncertainty due to recent interest rate rises, and fears the war in Iran and high oil prices could push Australia into recession.
Auction clearance rates for April are set to be the lowest in years, but scheduled auctions this week were up 175% year-on-year.
Sydney housing prices have skyrocketed since the end of the Covid pandemic due to demand caused by record-high levels of immigration, and the city’s median house price is predicted to hit $2 million in 2027 or 2028.
Header image: The Ermington house (Planet Properties).
