A burnt-out Norlane house became hot property when six offers rushed in for the opportunity to grab a full-size development block in the northern Geelong suburb.

The Rose Avenue house was destroyed by the fire, which witnesses said completely engulfed the building and sparked a police investigation in January.

Harcourts, North Geelong agent Shane King offered the property at 82 Rose Avenue with a $239,000 price guide as a development opportunity.

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He said the dwelling was severely fire damaged and was not fit for renovation.

“It was a good sized block of 660sq m. There is not a lot of opportunities like that for redevelopment at the moment,” he said.

The property spent 11 days on the market before selling for $251,500.

“It gives you that opportunity for a really straightforward two lot subdivision,” he said.

“I was smashed with inquiry and had six offers in the end.

“I’m glad it sold quickly because I was inundated. We had buyers from Sydney, Melbourne, local buyers. They were coming from everywhere.”

Mr King said there had been few vacant blocks sell in Norlane in the past 12 months, with none of similar size selling for less than $225,000 or more than $250,000.

“I think this as a great result considering it wasn’t a clear block. They’ve got to spend $15,000 to move the existing house.”

Mr King said most development opportunities in Norlane are more expensive as they sell with an older house that needs work, while buyers can pay between $150,000 and $160,000 for a subdivided block.

Data from Hometrack show Norlane’s median house price rose 4.3 per cent in the past 12 months to $365,000.

Most potential buyers were going to redevelop the site and hold the new residences as rental homes, he said.

“It’s at a price point if you do build and hold you’re getting a good yield and capital growth and you’ve instantly built equity.

“When you can gain equity, have a great return on investment and future capital growth rolled in to the one option, that’s a beautiful outcome for an investor,” he said.

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By admin