A modest home in Airport West has sold for a remarkable $1.175 million, exceeding its reserve by over $275,000. The property, located at 16 Peters St, attracted significant interest, with six bidders competing for the valuable 630 square meter landholding. This sale highlights the growing demand for land in the region, particularly among developers.
Offered for the first time in 65 years, the property was always expected to be a “land-value play,” according to John Matthews, director of the Matthews agency. The final price surprised even experienced agents familiar with the market dynamics. “This was a classic generational sale; livable, but really it was all about the land,” Matthews explained.
The property, situated on the cusp of Niddrie, showcased a wide 17-meter frontage, which contributed to the intense competition among developers, home builders, and renovators. The expectations for a price range of $875,000 to $950,000 were significantly surpassed, underscoring the current market’s vibrancy.
Mathews noted that the buyer intends to demolish the existing structure and construct two townhouses, reflecting a trend towards maximizing land use in the area. He remarked on the strong presence of bidders, stating, “We had six strong bidders. Some underbidders came with million-dollar budgets and still missed out.”
The home itself featured a front lounge room in original condition and a sunlit rear sitting room opening to a north-facing backyard. These elements were less significant to buyers than the potential for dual occupancy, which is attractive in a market witnessing a resurgence of interest.
“There is serious depth returning to the market,” Matthews stated, attributing the heightened activity to expectations of an upcoming rate cut by the Reserve Bank. He added, “It shows confidence is back, and with rate cuts on the horizon, I think this is just the start.”
The sellers expressed their delight at the outcome, viewing the sale as a well-deserved reward after years of holding the property. As the market continues to evolve, Airport West is emerging as a desirable location for those seeking investment opportunities in tightly held areas.
In this competitive landscape, the Matthews agency’s successful sale at 16 Peters St signals a positive trend for the real estate market in Victoria, particularly in suburban regions like Airport West.
