10 Alfred Place, Frankston, sold for more than $1.11m in a shock result for the once affordable suburb.
A Melbourne family yesterday watched the Frankston investment property they bought six years ago spark a $1.11m auction bidding battle that doubled what they paid.
Jacob and Teneale were yesterday in “a bit of shock” after the sale of 10 Alfred Place, which surged far beyond the expected $775,000-$850,000 sale price.
With five bidders battling for the three-bedroom home, and another seven registered that didn’t get the chance to make an offer, it was on the market at the $855,000 first bid — and sold for $1.11m.
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The pair renovated the home before selling, adding a second bathroom and an extra bedroom to the floorplan as well as a new kitchen.
But it was the location on a corner with scope for a subdivision that proved a major draw for investors, opening the door for a second home to be added at the rear.
“We bought it because of the land size and the potential of the current block,” Jacob said.
The tradie had planned to develop it himself, until their circumstances changed.
After seeing a series of interest rate cuts this year they decided to list it for sale.
A style-heavy renovation gave the home a new lease on life.
They also added a bedroom to the floorplan.
“We thought it was now or never for us to sell it, after the interest rate cuts,” Jacob said.
“I know how much work we put into it, and we definitely did what we could to get the highest amount, but to get over the $1m was a surprise.”
The family of six have yet to work out what they will do with the windfall, which is $350,000 above the suburb’s $760,000 median house price.
Ray White’s Terry Wheeler handled the listing and said it had “absolutely blew past” expectations.
“It was the perfect property to sell in this market,” Mr Wheeler said.
“We have a lot of interstate and local investors looking for subdivision potential.
“So I was confident it would go well, but not to this level.”
A new bathroom replaced the home’s former laundry.
The house had two street frontages, opening the possibility of a second home being added out the back to make the property even more valuable.
The agent said all of the 12 registered buyers had been investors, though many had been silenced by the pace of bidding.
While Mr Wheeler said the block was quite unique with its corner location, potential to have further homes added to it and scope to put a tenant in immediately to start collecting an income from it, the result was a game changer for the suburb.
“This will have to raise the bar for that type of property,” he said.
“$1m-plus sales have happened in the past. But not so much for the size of this property or in this area.”
Ray White chief auctioneer Jeremy Tyrrell conducted the auction and said the buyer was an investor who saw Frankston as an up and coming area and that the home’s beautiful renovation and scope to add value given its two street frontages had made it a perfect choice.
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