A house selling for $1m in Christie Downs would have been inconceivable just a few years ago.
Now the seemingly impossible has happened and an Adelaide buyers’ agent has taken to social media to explain how and why.
In a post titled ‘bargain or madness???’, Propsavvy buyers agency founder Cory Harding does a deep dive into the property to determine the reason it sold for such a high price.
While he predicted such price hikes in the suburb, which PropTrack data shows had a median house price of $285,000 five years ago and has since climbed to $679,280, he said the sale price of the property on Elizabeth Rd surprised even him.
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Propsavvy buyers agent Cory Harding breaks down the sale of a Christie Downs property at 20 Elizabeth Rd.
He said the sale price was “crazy”.
“I’m not going to lie, this is still a pretty crazy price,” he said in the video.
“Elizabeth Rd is one of the worst roads down in the southern suburbs, especially around Christie Downs, and despite all that, this thing still sold for a million bucks.”
Mr Harding said while the three-bedroom house had some problems, including it being rundown, it was worth looking past them and instead focusing on the land and the potential it offered.
The fact that the 744sqm property could be subdivided into four blocks was a big drawcard, he said.
“If you spend a million bucks, you’re looking at about $250,000 per block, raw cost, which then starts to make this look pretty cheap because some of these blocks are selling for around $350,000-plus,” Mr Harding said in the video.
“That being said, I do think that this person has paid the premium – there hasn’t really been a house this size and this type that’s sold at $1m, I think the most recent one was about $880,00 to $890,000.
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A developer purchased the property in the hope of splitting it into four.
Its land size and future potential were considered its biggest drawcards.
“It’s certainly a record but now this has set a precedent for the area.”
Mr Harding said land value and future potential were making “crummy homes” sell for huge prices.
“That’s why we’re noticing really crummy homes sell for a ridiculous amount – it’s not the home that appreciates but it’s the land and the potential that can be put on that land that dictates the value.”
Comments on the post varied from shocked to pleasantly surprised.
“I’m sorry WHAT??” and “insane” said some, while another was surprised it was “in my hood – great info”.
Harris Real Estate Wine Coast agent Sam Bennett, who sold the property with Kevin Renard, said even he was shocked at the sale price as they were expecting it to reach up to $850,000.
He said a developer bought it and planned to redevelop the site.
While there were often complaints about developers purchasing large suburban blocks to build multiple smaller properties, Mr Bennett said there were also plenty of people who complained there weren’t enough houses available.
Since the sale earlier this month, he said several other homeowners with similar properties had contacted him to discuss selling.
“It’s definitely sparked some interest,” he said.
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