Abandoned horror home stuns crowd at auction with insane price

A rundown home in Bronte has sold for a multimillion-dollar price. Picture: Jeremy Piper

A neglected house riddled with problems from decades of water damage has sold for nearly $3.9m at an auction that stunned the crowd in attendance.

The three-bedroom house on a 300sqm block in Bronte, in Sydney’s eastern suburbs, had been described by the agent as “terminal” after being left vacant for the last 20 years.

The price for the Palmerston Ave home was $3,835,000, $835,000 over reserve.

Agent Angus Gorrie of Ray White Eastern Beaches told The Sunday Telegraph before the auction that the home was beyond repair.

“It’s dead,” he said. “The whole place has been ruined. Absolutely ruined. There is nothing you’d keep … there is basically no kitchen. The ceiling has dropped in nearly every room.”

He added the home had the vibe of “a deserted haunted house”.

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The Palmerston Ave home had been vacant for decades. Picture: Jeremy Piper

One of the rooms had mysterious writing. Picture: Jeremy Piper

“There is water penetration everywhere. The floor is damaged. You could (fall) through it in places. It’s a serious project.”

Mr Gorrie said the interest was from experienced builders with plans to knock the home down and replace it with something new. “It’s too scary for most people,” he said.

There were 12 registered bidders. Seven made offers. The buyer was alleged to be planning a knockdown rebuild.

Mr Gorrie estimated a builder would need to spend about $2m on construction if they wanted a new home to be up to the standard of nearby properties. A modern house on the block would be worth about $7m, Mr Gorrie said.

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It is not known how the home came to be vacant for so long.

There were 12 registered bidders.

“It was a huge result,” Mr Gorrie said. “We knew it would attract interest because of the potential but it was a bit spooky how much work was needed. It’s a sloped block. And there was no front door. Some people took one look at the place and left.”

A crowd of about 100 people were reported at the auction. “There were a lot of curious neighbours. They had been walking past for years. There is a lot of interest in what might happen.”

Auctioneer James Hayashi was given a reserve of $3m and the opening bid was $2.7m. “It was probably the worst condition house I’ve ever auctioned,” Mr Hayashi said.

Some passers-by watching the auction were heard expressing surprise at the final price.

“People could look at it and see you’d need to spend a fortune on the property,” Mr Hayashi said.

The sale occurred on what was the busiest weekend for auction activity nationally in close to 19 months. More than 1,200 auctions were scheduled in Sydney alone, the highest weekly volume in three years.

Earlier on Saturday, this Roseville Chase sold for nearly $2m more than the price the seller paid in 2019.

Critically, the higher volume of auctions has not matched increases in demand as buyers continue to capitalise on recent interest rate cuts and government incentives.

Michael Garofolo, director of auction group Cooley, said the market was particularly strong for properties under $1.5m as that was the cap for the government First Home Guarantee Scheme, which helps buyers get into the market with 5 per cent deposits.

Earlier in the day, in the Sutherland Shire, a 1200sqm property in Miranda changed hands for the first time in more than 80 years for $3.1m – $105,000 over reserve.

The family who had owned the Karimbla Rd property were reported to have bought it when the area was semirural and dominated by small farms.

35 Karimbla Road, Miranda sold for $105,000 over reserve.

Auctioneer Andrew Cooley of Avenue Auctions received interest from five registered bidders – all builders drawn to the opportunity to replace the existing five-bed house with a townhouse complex.

In the Sydney’s north, a Roseville Chase home that had last sold in 2019 for $1.92m has resold for $3.85m, nearly $2m higher, after a minor cosmetic renovation.

There were seven bidders registered for the auction of the three-bedroom house on Allan St and five made offers.

Selling agent Jessica Cao of Ray White Upper North Shore said the home attracted interest from downsizers, investors and upgraders.