Investor snaps up half-built home at hotly contested auction

Desperate buyers are snapping up half-built homes at hotly contested auctions as property demand continues to outstrip supply across Brisbane.

More than 400 buyers and spectators were in session for an auction event at Mansfield State High School as $14m in property changed hands over a nail-biting two hours.

One fiercely contested auction was for a half-finished house at 115 Dunbar Street Mount Gravatt East – snapped up by a local buyer for $1,372,500 from among a field of 34 registered bidders.

Ray White Mount Gravatt principal Grant Boman said all 12 properties up for auction on the night sold, with a collective reserve surplus of $1.2m and active bids “flying across the school hall”.

The half-built house attracted plenty of interest

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The sale was “bittersweet” with the family forced to sell when their builder went bust

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He said the agency had a “near perfect” auction clearance rate, with only four properties passed in so far this year.

“And they sold directly after auction anyway,” Mr Boman said.

“Quite simply, we don’t have enough supply to meet demand.

“This creates a wonderfully competitive auction environment with great leverage for our sellers, and buyers also love how transparent it is.

“Gone are the days where you make an offer and they come back with a counter offer a few days later – things have to happen faster than that now.”

He said Mount Gravatt and the surrounding area “ticked a lot of boxes” for prospective buyers.

Ray White Mount Gravatt auction event

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“The vast majority of our buyers are families,” he said.

“If you’re a mum and dad with three kids you maybe work in the city, want access to major roads, want good schools and want a family sized property with assured growth – you’ve got it all.”

He said the Dunbar Street property was “no more than a shell” with the build halting after the collapse of major Australian residential construction company Porter Davis.

“Back in the day no one would have wanted to look at that, but these days people can see the potential in a half-finished property in a good area,” he said.

“The site has already been levelled and retained and the frame is there so a new buyer can finish it off.

“More people are willing to take on a project than before, once again, because we just don’t have the supply we need to keep pace with this demand.”

5 Rubens St, Mackenzie sold for $1.58m

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Mr Boman said families were flocking to residential pockets southwest of the city for coveted school catchment zones.

“I grew up around here and have worked here for 22 years and schools like Mansfield State High have become a brand name in itself,” Mr Boman said.

“The area is very multicultural, very welcoming, very friendly and your kids will get a great education – what more do you want?”

A dozen properties sold under the hammer on the day

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