Why uninspected, unloved and often uninhabitable homes are hot property

They’re uninspected, unloved and often uninhabitable – but Queensland’s public trustee homes are proving hot property for Brisbane bargain hunters who are willing to pick up the tools for a hefty discount.

Queensland Public Trustee figures reveal more than 340 homes were sold under the hammer last year, many too dangerous to view inside and selling for up to 30 per cent less than the suburb median.

From falling-down worker’s cottages in the inner city, to half-gutted units in sought-after suburbs, the ownerless homes are typically sold “as is” – yet drew dozens of bidders hoping to flip them for profit or get a foot on the ladder.

The Queensland Public Trustee sold 46 Morley Street in Toowong for $1.3 million.Credit: Queensland Public Trustee

The trustee’s auction clearance rates are double that of the capital’s average weekly figure, at 80 per cent.

According to KPMG’s latest Renovation Domination report, Brisbane topped the nation for renovation spending in 2023 and 2024 – revealing just how many local buyers were turning wrecks into riches.

QPT principal auctioneer Paul Gaffney said about 75 per cent of homes they sold needed significant renovations, with just 20 per cent liveable, and only 5 per cent being turn-key ready.

He added that 70 per cent of the homes were deceased estates with 30 per cent sold on behalf of financial administration customers.

“There’s one common thread in almost all property we sell, which is that it has been home for our customers for a long time prior to sale, sometimes for as long as 40 or 50 years,” Gaffney said.

Brisbane’s median house price cracked the $1 million median mark last year and unit medians have clocked a record stretch of price growth.

But budget buyers had better head to Bunnings first.

Gaffney said last year rounded off a top batch of sales for QPT, including 46 Morley Street in Toowong, which sold in March for $1.3 million – or about 25 per cent less than the suburb’s $1.75 million median house price. The pre-war cottage was “in desperate need of some love and attention” and had missing timber, blemished floors and a kitchen hanging on by a thread.

“No inspections were permitted … it was the classic Queenslander, worst house on the best street,” he said.

“About 70 people attended the auction, with well over 20 registered bidders, 28 bids and it was sold in under 10 minutes.”

According to Domain’s latest house price report, the average house price in the riverside suburb was now just over $1.75 million.

A three-bedroom house at 26 Ballylin Street in Ferny Grove sold for $750,000 in September last year – almost 32 per cent below the suburb’s current median house price of $1.1 million.

A three-bedroom house in Ferny Grove sold for $750,000 – almost 32 per cent under the median house price for the suburb.Credit: Queensland Public Trustee

And it’s not just houses. Gaffney said QPT sold a two-bedroom unit at 17/60 Sherwood Road in Toowong for $587,500 – or 15.9 per cent less than the suburb’s $698,775 median unit price – last year. He added the 73 square metre apartment was partially renovated.

“Our average sale price [in 2024] was around $665,000 and about a third were in the $500,000 range,” he said.

According to Domain’s latest House Price Report, released this week, Brisbane’s median house price is $1,022,026, while the unit median is $657,645.

“[Our] buyers are diverse. They can be builders arriving in trucks, mums and dads that flip a house every few years, or home buyers who plan to live in the property. And generally we’d attract 10 to 12 bidders on average at our auctions,” Gaffney said.

“Queenslanders, worker’s cottages, character homes that are close to the city centre tend to get the most interest.

“That’s the case even though some of those houses are sold sight unseen because we can’t allow viewings for safety reasons. That doesn’t seem to put buyers off at all.”

He said properties were marketed for four weeks before auction, with unconditional terms, a 5 per cent deposit on the day, and a 42-day settlement.

As for the next fixer-upper that could be turned into riches, Gaffney said 89 Haig Road in Auchenflower was a textbook QPT offering, with the 1920s cottage being auctioned off on May 9.

The ramshackle home sits in a prime patch but there’s strictly no inspections allowed.

“Potential buyers can request building and pest inspection reports from us. It is attracting a lot of interest because of the potential for renovation,” he said.

The home sits on a 574 square metre block and is so dilapidated it’s close being one with nature, with peeling paint, foliage encroaching on the facade, and a battered entrance.

Yet, in a suburb where the record house price hit $5.85 million and annual sales were too few to establish a median, the dwelling might be a figurative pot of gold.