Run-down South Melbourne cottage comes with hefty price tag

April 10, 2018 by  

The high cost of homes in the area has recently been emphasised in a small, worn-out cottage on 135 Eastern Road in South Melbourne asking for around $820,000 – $900,000.

The one-bedder cottage not only sits on a tiny block, but also comes with rotten floorboards and a caved-in roof.

Furthermore, the old house is not allowed to be demolished due to a heritage overlay. However, appeals to remove the restrictions could possibly be successful due to the current bad conditions of the cottage.

According to data from CoreLogic, over the three years to end of 2017, the median home price in South Melbourne has experienced a significant increase of 56.3%, rising to $1.5m.

According to Warwick Gardiner, director of Greg Hocking Holdsworth, although renovating the Eastern Road house may be a daunting task, it could provide a significant payoff to a nifty renovator or developer who puts in the effort. He added that a new second-storey addition to the home may allow the new owners to enjoy views of Albert Park Lake and the city.

Homebuyers or investors who are interested in getting into the South Melbourne housing market should get in touch with real estate agents who can provide valuable information on secondhand homes, perhaps through acquiring business cards of agents in the area.