A dated four-unit Glenroy block has sold for a massive premium above the $900,000 seller’s reserve price.
The 58 John Street (main image above), property soared to a $1.172 million sale after four local investors competed strongly for it on November 19.
The units require a bit of work but have been leased since they were built in the 1970s.
“The property was advertised with a reserve price of $900,000 but the first bid was already $910,000,” Barry Plant Glenroy auctioneer Roy Khoder said.
“The auction started strongly and climbed up pretty much after that.”
There were two bidders left standing at the end of the auction, which gave the long-time owners a huge windfall of $272,000 above the reserve.
Advertising the reserve price prior to auction is often used to indicate to potential buyers the seller’s price expectations.
The 837sq m property attracted more than 100 groups of buyers to the inspections, despite the units needing renovation.
“The buyers will renovate the property and lease out the units, which should fetch a strong rental income,” Mr Khoder added.
The sellers are among many landlords who are selling or have sold their investment properties since the new rental law changes came into effect in 2021, Mr Khoder said.
“But there are also many new investors getting into this market,” he added.
“We are seeing more units, whether in a block or a single unit, being listed.”
The John Street property features four units of two bedrooms each on the one title. Each unit has a lounge room, kitchen, bathroom and laundry.
The property is in a quiet and family friendly location near parks, schools and transport. It also has potential as a re-development site.
The agency also had another successful auction on the same day at 10 Blair Street, Broadmeadows, which sold for $755,000. Three bidders pushed the sale price just past the $730,000 reserve.
The 851sq m property was on the market for the first time and offered buyers potential to renovate, develop or rezone.
The main house with three bedrooms is complemented by two self-contained bungalows in the backyard.