Building company takes huge risk buying at high stakes property sale
Builders and developers are seeing huge success at auctions over the weekend – but some had to pay more than they planned to get their new homes.
A building company took a big risk when buying a home in Hendra for more than they’d planned, at a huge auction event that drew a crowd of 60 people.
The three-bedroom, one-bathroom home at 38 Harding St was marketed as an opportunity for future development or big-block living, drawing 19 registered bidders from all walks of life.
Among the dozens of people observing the Saturday morning auction, Ray White Ascot agent Chrese Morley said many members of the crowd had met before, and some of the active bidders “knew each other from previous auctions”.
“[It was] almost like a community gathering,” she said.
Seven active bidders began to bid back and forth for the property, with the auction beginning at an offer of $1.5 million.
Ray White Ascot agent Chrese Morley said the climb was “slow and steady” over the rest of the auction, rising up to nearly a million dollars more than where it started.
Finally, the home sold for a total of $2.305 million: $488,000 over the suburb median.
Ms Morley said the winning bidder was an employee of a building company, who needed to call his work to let them know it cost more than they had expected.
“[He] got a bit enthusiastic and bid a bit above what he was told to,” Ms Morley said.
The company plans to rent the home out in the short term, planning to use the 2 lots of land for a development later down the line.
The old owners had lived in the property since 1955, and Ms Morley said it was emotional for them “farewell their family home”.
Meanwhile, a developer was able to snatch up a home at 22 Craigan Cres, Aspley, for $2.26 million around the same time of day.
10 registered bidders attended the auction, five of them actively making offers for the four-bedroom, three-bathroom home.
The property was most valued for its land size, at 2,041 sqm: representing four different lots that can be built on for future developments. Its new owners have plans to subdivide the property after the sale is completed.
Ray White AKG agent Avi Khan said a crowd of 60 watched a “very slow and intense” auction, which went ahead despite having 16 offers prior.
With sales going off across Brisbane, Mr Khan said the huge number of sales represent a clear desire for certainty in the market before the end of the year.
“We’re seeing a perfect storm of buyers at moment from all different angles,” he said. “People want to be listed and sold before December … it’s a great time for people to say, ‘Hey, what can we do before Christmas?’”
Originally published as Building company takes huge risk buying at high stakes property sale