Unliveable South Yarra house sells for $2 million, $700,000 above reserve

A dilapidated South Yarra property that is ripe for an overhaul fetched $2 million at auction on Saturday, after soaring $700,000 above its reserve. 

Five prospective buyers fought for the classic pair of two-bedroom houses on just 300 square metres at 27 & 27A Macfarlan Street.  

The first offer was already $200,000 above its reserve – a knockout bid that instantly put the property on the market – and there was no lack of momentum thereafter, as a mix of developers and investors pushed the price to a well-rounded $2 million. 

The couple who won the property – offered for the first time in 50 years – plans to knock it down and rebuild.

With about 70 contracts handed out and 130 inspections through the campaign, Hocking Stuart auctioneer Nick Gatacre said there was no lack of interest because “the block was versatile”. 

The two two-bedroom houses are on one title and you can either knock it down or subdivide it, he said.

Advertised as a “restoration project” or a rebuild “guaranteed to reap rewards”, the block is a short walk to South Yarra station, Toorak road shops and trams and Chapel Street.