Sydney’s shortage of construction-ready and affordable property has led to an array of fire damaged homes – many deemed uninhabitable and covered in debris – being snapped up by eager buyers.
An array of properties that have been ravaged from devastating fires have recently sold across the city, many with staggering price tags.
Last week, a Surry Hills terrace sold for an undisclosed amount after going to auction guiding $1.7m.
134 Foveaux Street, Surry Hills sold at auction for an undisclosed amount guiding $1.7m
This follows earlier sales, such as a five-bedroom house in Waverely that sold in February close to its $7.5m guiding price while another sale in the same month included a property in Blacktown that fetched $840,000.
The online listings often describe the properties as “a blank canvas” or a “unique opportunity”, ranging from houses to units that may require significant repairs or renovations.
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A fire damaged home at 21 Kent St, Waverley sold in February close to its $7.5m price guide
This Blacktown house sold in February for $840,000
Alex Hart of Hart Estate Agents Rose Bay said these homes give buyers the opportunity to reinvent the property, depending on the amount of damage.
“I think people get quite excited by that,” he said.
“The main thing is the extent of the damage, because it’s not always obvious.
“It’s important to know how much structural damage there is, unless you’re going to be knocking the property down completely.
“You can see a certain amount of damage with your eyes, but there’s a lot that you can’t see – how solid are the external walls, are they fully supported – these are the things that you have to look out for in a fire damaged property.”
This Auburn fire damaged home sold for $1.44m
According to Mr Hart, people like the “potential to start fresh.”
“I put them into the category of unrenovated properties that are so rundown and so neglected, it could be from fire or other reasons,” he said.
“I’ve had a number of properties that are sold around the inner suburbs, Paddington, Surry Hills, Chippendale – people generally get very excited about them because just the fact that they’re so rundown and unrenovated they haven’t been touched in so long.
“They’re not for everyone, that’s for sure, but there are people who really love the opportunity to come in and reinvent a property.”
In October, a block of units at 164–166 Victoria Rd, Punchbowl sold off-market to a local developer for $2.9m. The block had been destroyed by fire in 2024 and sat idle under a large blue tarp. The developer allegedly has plans to restore it to its former glory.
“We find that people who like to buy these buildings are quite wealthy investors and like the fact that they are on one title, you don’t need to strata it and have all those overheads,” Lead agent Fadi Hajjar principal of Class Realty Bankstown said at the time of the sale.
“On something like this, we’re looking like (about) $280,000 a year in rental return for the finished product.”
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164-166 Victoria Rd, Punchbowl sold for $2.9m
Inside the fire-damaged unit block in Punchbowl
Mr Hajjar alleged that an investigation had found the fire was from a former tenant misusing a power point. The blaze went through one of the top units and spread through the roof of the building.
The sales have come amid warnings of risky or reckless household habits and poor battery-charging practices sparking more home fires with devastating results.
In February, home and contents insurance comparison service iSelect surveyed more than 1,000 Aussies to uncover which dangerous habits the nation is most guilty of around the home, revealing more than four out of five (83 per cent) admitted to at least one dangerous habit in the past year.
A North Bondi apartment was destroyed after a battery from an Electric Bike caught alight. Photo: Jeremy Piper
The most common was electrical complacency, with nearly half of Aussies (48.1 per cent) leaving kitchen appliances, such as kettles and microwaves, plugged in when not in use.
In a close second, 44 per cent admitted to leaving electrical items, such as TVs and computers, plugged in when non operational.
Electrical appliances and faults were the cause of 40 per cent of home fires, with 40 to 50 per cent starting in the kitchen.
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