Wooden shacks are for brave buyers as Albert Park offering attracts no bids

A dilapidated wooden shack in Albert Park in Melbourne listed for sale with price hopes of around $600,000 was passed in on one $500,000 vendor bid at its weekend auction.

The weatherworn home comes with planning approval for a three-storey, four-bedroom overhaul incorporating the existing facade.

The property has heritage requirements, which have been incorporated into development plans.

The corner block last traded for $578,000 in 2010, when listed with $470,000 to $520,000 price expectations.

The current listing agent Peter Zervas from Greg Hocking Holdsworth told Property Observer prior to the weekend auction that he envisaged the planning approval and plans would have added value to the project.

Zervas says builders have quoted $300,000 to $400,000 to realise the plans for the corner block.

He says they had had interest from builders and developers as well as individuals looking to occupy.

The plans for the new building were designed by architect firm Oof and were approved in 2011.

Zervas says the vendor has other projects on the go and has decided to let this one go.

Meanwhile another shack in GLEN IRIS is up for sale at 49 Osborne Avenue. It’s been in the same family for more than 100 years.

The Victorian timber cottage sits on 1,008 square metres.

Agent Rae Tomlinson from Marshall White Armadale is selling the property and is looking for offers around $1.5 million.

“There’s no heritage considerations with it,” says Tomlinson.

“If it were restored it would be absolutely stunning, but it would be challenging.”

Tomlinson says she’s had interest from developers and people looking to build a home.

And a shack on Burnley Street, Richmond (pictured below) on 776 square metres recently sold for $1,621,000.

The house is a uninhabitable three-bedroom shack that is being sold in a deceased estate.

The executor of the will is the former owner’s son in his 60s, who grew up in the house.

Agent Allan Cove from Biggin & Scott Richmond says the property is probably at least 120 years old.

He says despite its condition it has a heritage overlay, which made thing difficult.

“There’s a huge question mark on that. Developers were doing their own enquiries as to whether it could be demolished and the council said anything was possible, but permission had to be sought.”

“The owners prepared a condition report which says it’s uninhabitable. I’ve had developers and builders look at the house and they said it would cost more to renovate than to demolish and rebuild.”

The property was bought by a property developer, who is deciding what to do with the property.

“He’s not too sure at this point. The vast majority of the site was vacant land. He’s weighing up his options, even considering going down the track of retaining the house and possibly creating something on Canterbury Street.”