Struggle Street turned millionaire row: How a dilapidated fibro home sold for $2million in Sydney's Mount Druitt
A decrepit fibro home in Sydney's west has sold for an astonishing fee well above what its owner expected after frenzied bidding in an online auction.
The 1150sqm property on Derwent street, in Mount Druitt, sold for $1.92million on July 24, a record $520,000 over the owner's reserve.
Gentrification projects and the train lines linking western Sydney to the incoming Badgerys Creek airport contributed to the sale price, but the block was also a prime candidate for developers.
A home on Derwent street in Mount Druitt has sold for $1.92million in an online auction on July 24
Thirty-two bidders took part in the auction, which was said to be at a frantic pace as people are finding better value in Sydney's west than other areas
'It was on a corner block with R2 zoning and developers know anything they build on the site will resell for a good price at the moment,' Agent Sid Elias told realestate.com.au.
R2 zoning is land comprised mainly of low density housing, which allows for housing and a variety of community facilities or services such as child care centres, dwelling houses and seniors housing.
LJ Hooker Colyton/St Clair had expected a similar result to the previous Mt Druitt R2 property record set in May, but this sale smashed it by about $600,000 as 32 bidders fought it out for the hot property.
'A lot of people think of Mount Druitt as Struggle Street but it has actually become one of the most sought after areas in Sydney because of the better value,' Auctioneer Jerome Smith said.
The sky-high price was said to be due to gentrification projects and also the new train line linking the Badgerys Creek airport to Sydney's west
The fibro home received an opening bid of $1.17million and reached $520,000 over the owner's reserve price
Mr Elias said that buyers are often coming from out of area, especially from Parramatta and Canterbury-Bankstown due to being priced out of their own area, with more being on offer in Mt Druitt.
The auction was held by Above the Reserve Auction Services and bidding was said to be incredibly fast, with an opening bid of $1.17 million.
'Online auctions have a lot of benefits, you don't have to leave home and no one knows who you are. We had some relatives bidding against each other, without knowing,' Mr Elias said.