A student-accommodation apartment at 104/58-59 Douglas St, Noble Park, has sold for just $86,000.
A Melbourne property has changed hands for such a small sum the agent was fielding calls asking if she lad left off a zero.
At just $86,000 the sale of 104/58-59 Douglas St, Noble Park, is among the cheapest sales yet in 2024.
It’s also less than a tenth of the wider city’s $912,000 median house price, and less than 14 per cent of Melbourne’s $619,000 typical unit value, according to latest PropTrack data.
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For the money, the buyer picked up an open-plan studio apartment with the bedroom, living zone and kitchen all in one — though the bathroom had its own room.
But the tiny price comes with a big catch, as the studio is designated as student accommodation and only tenantable by those studying.
Ray White Dandenong agent Fatima Rezai handled the sale and said she had received up to 20 inquiries a day from people “unable to believe how cheap it was”.
“They were asking if we had forgotten any zeros,” Ms Rezai said.
The apartment’s main living space includes room for a bed and a desk.
The kitchen is in its own annex, but still connected to the open-plan living space.
While the property’s $913 a month rental return would add up to almost $11,000 a year, close to a 13 per cent yield, the agent said it did come with additional costs.
The owner has taken on about $3000 a year in body corporate fees, council rates, water charges and a management fee to building operator Student Housing Australia.
Ms Rezai said she wasn’t sure if the property came with any land tax requirements.
But with the minimum threshold for the increasingly hated levy set at $50,000 — any obligations would be minimal.
The buyer, an investor who planned to have family and friends lease it out while studying, purchased the property after just two public inspections.
“There were only two inspections, with about seven or nine people looking at it each time,” she added.
The bathroom includes a commode, vanity and shower.
A shared lounge space in the building provides an indoor area with more room to spread out.
It’s the second one she’s sold in the same complex this year for the same price, with No. 12 at the address also snaring $86,000 in February.
It also comes just a few weeks after a Frankston unit in the suburb’s notoriously troubled Ambassador Hotel sold for just $99,000.
Once a ritzy wedding venue, it has been converted to apartments whose residents have since dubbed it one of the most dangerous addresses in Australia.
However Fosterfroling Real Estate director Adrian Foster who handled the sale this year said it had definitely improved in the past few years.
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