Buyers steer clear of houses acquired for East West Link

Houses which were acquired for the ill-fated East West Link and were taken oven by squatters could have their prices slashed as cautious buyers steer clear despite a falling market.

Houses acquired for the ill-fated East West Link could have their prices slashed by up to $100,000 as buyers steer clear despite a falling market.

It is understood the price tags of several properties in Collingwood — up for sale after being inhabited by squatters in 2016 — will need to be dropped significantly to ensure they are sold.

Included in the languishing property portfolio is 4 Bendigo St, which has been listed for several months.

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A man yells outside a house in Bendigo St, Collingwood, where Wilson security personel attempted to evict squatters. Picture: Jake Nowakowski

Squatters took over the residence in 2016 and a man in his 50s was found dead from a drug overdose in the property.

The house was listed for sale at $835,000 to $918,500, but experts told the Herald Sun that price is unachievable, in the current market.

Especially with buyers concerned the homes could be reacquired if the project is ­resurrected under future governments.

Nearby, 7 Bendigo St will go under the hammer on May 18, the day of the federal election.

Despite being listed with a price of $825,000, it is estimated to be valued in the $700,000s.

The state government has struggled to sell many of the houses bought to make way for the road after Premier Daniel Andrews ripped up the contracts for the $7 billion tollway.

Cancelling the project also left taxpayers with a hefty bill, which continues to grow, ­according to shadow treasurer Louise Staley.

Squatters being evicted from homes purchased for the East West Link in Collingwood. Picture: Yuri Kouzmin

“He has already wasted ­$1.3 billion to not build a road and it’s not over yet,” she said.

“They have had to spend money on them and they can’t sell them. The government is stuck with these properties. That is the effect of tearing up the contracts, which is still costing Victorians.”

A government spokesperson said valuations and reserve prices will reflect current ­market conditions.

“Surplus government land is sold based on valuations which are valid for three months,” the spokesperson said. “Valuations for these properties will be reviewed ahead of auctions and final sales prices will reflect the market.”

Twelve other Bendigo St properties acquired by the ­government have been sold.

They were among more than 100 homes in the ­acquired portfolio to be sold, which was estimated to be worth $320 million in 2018.

Most properties have been slowly sold back to the public, except for some units in ­Parkville earmarked for social housing.

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