A ramshackle old house in one of Brisbane’s most popular suburbs could earn the right buyer more than $1 million.
With its rusted red roof and weather-worn exterior, 23 Chermside Street, Grange sticks out like a sore thumb amongst the quality homes on the street, most which have been painted crisp white and upgraded with solar panels.
The tired Queenslander has certainly seen better days, and the listing pulls no punches when describing its dilapidated condition.
Most of the paint has worn off the exterior and the weatherboards look, well, weathered. Picture: realestate.com.au/buy
“The best way to describe this property is structurally concerning, uninhabitable and possibly unsalvageable,” the listing states.
The home not only has “severe structural defects”, according to the listing, but also “historic and possibly current termite activity”.
Photos of the property show that the front steps are on the verge of collapsing, with what appears to be a young jacaranda tree growing from underneath.
But despite its sorry state, this old clanger has an ace up its sleeve – it straddles two 405sqm lots, making it a prime redevelopment opportunity.
The large property occupies two lots, allowing two new homes to be constructed on the block, subject to council approval. Picture: realestate.com.au/buy
“If approved, two brand new homes in this location can be exceptionally lucrative,” the listing states.
Selling agent Cayle Blaxland of McGrath Wilston said nobody had lived in the long-held property this century, apart from a family of possums that had taken up residence inside the house.
“It's been in the family since the 60s and the owners haven’t occupied the property for quite some time,” he said.
“It’s been in this particular state for a few decades.”
The home could also be renovated by anyone brave enough to tackle the tumbledown home. Picture: realestate.com.au/buy
Mr Blaxland said the land represented most of the property's value, and large blocks of about 800sqm in the inner north suburb that were ripe for redevelopment were “few and far between”.
“This property is really only one of maybe a dozen opportunities throughout the whole suburb that would still present itself to be renovated or redeveloped.”
“Most of the properties have already been capitalised on.”
An equivalent sized property nearby with a similar two-lot configuration but a much more habitable house sold in May last year for $2.35 million, while another house on an 810sqm block with a 20-metre frontage sold in late 2023 for $1.75 million.
Is that a jacaranda growing under the front steps? Picture: realestate.com.au/buy
The median house price in Grange in the past 12 months was $1.7 million – up almost 14% compared to a year ago, according to PropTrack data.
Mr Blaxland said a newly built home on one of the property’s 405sqm lots could conservatively be valued in the high-$2 million range, depending on the size and quality of build.
However, given planning approval and construction could take up to 18 months, finished properties could be worth even more by then, Mr Blaxland said, given the strength of the market.
This brand new house just a few streets away demonstrates what could potentially be built on one of the lots – it recently sold for $2.65 million. Picture: realestate.com.au/sold
A five-bedroom newly built house on a 405sqm block on Wilston Road in Grange sold for $2.65 million late last year, while a brand new house on a slightly larger 422sqm block on Evelyn Street recently sold for $3 million.
Constructing a brand new 350sqm house in Grange would typically cost anywhere from $4000 and $5000 per square metre, Mr Blaxland said, meaning a house of that size would potentially cost $1.4 million to $1.7 million to build.
While the size of the relatively flat block and the rundown nature of the house makes it a prime candidate for subdivision, the property still has the potential to be fully transformed into a luxury family residence, Mr Blaxland said.
This fully renovated five-bedroom house on 810sqm of land recently sold for $4.55 million. Picture: realestate.com.au/sold
“There's a strong argument for someone to try and turn this into a nice family home and retain the full 800sqm block.”
He cited the example of a fully-renovated Queenslander on a 805sqm block around the corner that recently sold for $4.55 million – a result he said was becoming "the new normal" in Grange.
Another fully-renovated house that sold for $5.1 million in mid-2024 currently holds the price record for an 810sqm block in Grange.
This renovated house on an equivalent-sized block sold for $5.1 million. Picture: realestate.com.au/sold
Based on those examples, a buyer who redevelops or renovates the property could potentially walk away with a profit of more than $1 million, depending on the cost of construction, the end value of the development and the price paid for the property.
23 Chermside Street is for sale by offers with a deadline closing March 31.
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