North Melbourne former cable tramway engine house apartment conversion fetches $680,000

Warehouse conversions are hot property in Melbourne, enticing homeowners to pay a premium for their period charm. 

Among the recycled properties auctioned on Saturday was a one-bedroom apartment in the former cable tramway engine house in North Melbourne.

The heritage-listed landmark was built in 1888 and was converted into 17 apartments and townhouses. 

The conversion by TGR Construction placed the residences on either side of a central undercover driveway that leaves the building’s soaring ceilings as a central feature.

The engine house powered part of Melbourne’s cable tram network, which was replaced in 1942. 

Fast-paced bidding between five keen buyers for 1/201 Abbotsford Street took it onto the market at $610,000, and to a sale price of $680,000.

It was a relief for first home buyer, Alex Orton, 24, who had already missed out on several historic homes since he started hunting last November. 

Mr Orton plans to live in the property, but said he hoped to rent it out in two years. 

“Prices have been … going up, but everywhere has, so you buy slightly out of your budget and you hope that it holds its value,” the clothing entrepreneur said. 

“Any buildings with historical value comes with a premium, and that’s what you pay for.”

With more than 100 inspections during the campaign, listing agent Nicole Gleeson of Kay and Burton said there was strong interest in converted properties. 

For Abbotsford Street, the prospective buyers were mostly first home buyers, young professionals and investors. 

“The conversion seems to be what people are wanting these days; whether it be a warehouse of some sort or just some kind of old world, heritage-listed [property],” Ms Gleeson said. 

“I think there’s not enough conversion properties offered to the market, and they’re very, very popular.”

Compared with older-style apartments, Ms Gleeson said warehouse conversions had more open space. 

Nearby at 252 Rosslyn Street in West Melbourne, a converted storage warehouse sold for $100,000 over the reserve.

Six prospective buyers braved the rain to place bids for the two-storey, four-bedroom house. An investor eventually won the keys for $1.55 million. 

Lou Rendina of Rendina Real Estate said warehouse conversions were not only “very sought-after”, but also had prospects for growth. 

He said they were popular with buyers because of “their sheer size”, beautiful facades and original character.