This article was first published by Christina Zhou on the 8th Oct 2016 via domain.com.au | Image: The buyer of this warehouse conversion at 12/120 Cambridge Street, Collingwood, paid $1,645,000 for an apartment with no outdoor area. Photo: Nelson Alexander
Desperate home buyers have splurged millions on houses without critical features such as parking, outdoor space or even a kitchen.
More buyers are forgoing conveniences because of lower volumes of quality listings this year, which has also led to more competition and reserve prices being obliterated.
A warehouse apartment with no outdoor area at 12/120 Cambridge Street, Collingwood, sold for about $1.65 million – more than $300,000 over reserve, Nelson Alexander’s Arch Staver said.
Three people were willing to forgo an outdoor area for the features the property offered, he said.
“It ticked a lot of boxes, but [an outdoor space] was the one that more often than not people really want ticked off, but this was a good example of a willingness to forgo it,” Mr Staver said.
In Armadale, a young couple fought off three would-be buyers and spent $2.13 million – $380,000 over the on-the-market price – to win the keys to a three-bedroom house with no designated car space.
Being walking distance to Armadale station, parkland and High Street shops meant buyers did not need a car – but some may expect a car space in a multi-million dollar home.
RT Edgar’s Anthony Grimwade said buyers in inner-city pockets were willing to give up features such as car parking or additional land if they had parks and good facilities nearby.
Off-street parking was “a real luxury” in the Fitzroy area, Mr Staver said, and there was almost always a willingness to forgo that feature for a good quality house.
“Virtually every corner in Fitzroy has a car that you can hire, so I think we’re starting to see more and more people who think ‘maybe I don’t need to own a car, I’ll just use these GoGet cars that are just scattered all over the place’,” he said.
A half-finished renovation job did not deter two young couples from fighting for a Yarraville house with no kitchen in April.
The buyer paid $1,158,000 for the weatherboard, on about 400 square metres and with room for an extension, at 2 Hood Street in Yarraville.
Buyers were also foregoing renovated homes to get into popular inner-western suburbs.
Biggin and Scott Yarraville director Tristan Tomasino said a few unrenovated homes had recently sold for more than $1 million.
A double-fronted Victorian home at 24 Berry Street in Seddon, advertised with potential for renovation, sold at auction for $1,001,000 in July.
Some buyers were also foregoing a bedroom to get into the area. Mr Tomasino and his partner recently bought a one-bedroom period house in Yarraville for more than $800,000.
“We were looking at two or three-bedroom homes, but we just couldn’t afford what we wanted – we wanted something to renovate,” he said.
“The agent marketed it as a two-bedroom home, but the second bedroom was a loft base upstairs; you have to climb an actual ladder to get into the bedroom.
“Technically that’s not a bedroom, so it’s really only one formal bedroom.”
Barry Plant Rosanna’s Brett Greig said buyers would pass on an extra bathroom for a suitable house in the area.
A three-bedroom house with just one bathroom at 2 Leon Avenue, Rosanna, sold for $915,000 last month.
“In the past, people looking for a house at that price point would absolutely need a second bathroom,” he said.
“Whereas at the moment, if the master bedroom is bigger, they’re happy for it to service the entire family.”