Western Sydney: small developers splash millions on properties they haven’t even walked on
DEVELOPERS are so confident with their site purchases, many are not even bothered to visit the property before buying.
CASHED-UP small developers are scooping up existing homes on big blocks in the Parramatta region for millions of dollars — without even stepping foot on the land.
According to Starr Partners Auburn agent Steve Sanders, who sold two such properties in the past month, a majority of the buyers were not interested in having an inspection.
“Because they were just interested in the land, most of them just wanted a copy of the contract and either just drove past or just turned up on the (auction) day and bid,” he said.
In fact, the buyer of 45 Kirkham Rd, Auburn, who paid a cool $1.9 million for the property, only thought to ask Mr Sanders and his co-agent Adam Hmoud about the modest fibro house after buying it.
“He just wasn’t interested in the house itself. He asked: ‘can I rent it out as it is, what’ll I have to do to rent it out?’”
Mr Sanders saw a similar situation unfold with the sale of a vacant block at 38 Albert Rd, Auburn for $1.25 million, where neither the underbidder or the winning bidder stepped foot on the land at any time, even on auction day.
“It’s happening right through Auburn, Granville, Merrylands, Guildford — we’re finding a lot of small developers are looking to get sites to build duplexes and then selling it,” he said.
On the other side of the region, 46 Toongabbie Rd, Toongabbie, sold earlier this year to buyers who were equally indifferent to the house.
With plans to build about 20 townhouses on the 3320sq m block, the developer splashed a whopping $3.888 million on the “unlivable” property.
“The buyer didn’t even walk through the house,” selling agent Ramez Riad of Harcourts Parramatta said.
“There’s a huge growth in Parramatta and the greater Parramatta region and it’s a core area where buyers are really keen to get into, as well as developers.”
Originally published as Western Sydney: small developers splash millions on properties they haven’t even walked on