How much would you pay for a knockdown with an ocean view?
A property in Redhead, held by one owner for 51 years when it was bought for $14,700, has sold for an eye-popping price after attracting multiple offers from buyers who all had plans to demolish the existing house to make way for a new home.
After hitting the market in March, the three-bedroom house, positioned on 790 square metres at 14 High Street, has sold for $3.3 million with Ben Casey of Sold Real Estate.
"There were six people who made offers during the campaign, ranging from $2.7 million to the purchase price of $3.3 million," Mr Casey said.
"The majority of people had offered $3 million and every single person who made an offer was looking to do a knockdown rebuild.
"There were a few early offers at the $3 million mark who were pretty much all cash buyers and toward the end, this buyer made an offer which shifted the price point a little higher than where most other people had been."
Offers came from buyers based in Redhead, Merewether, the Hunter Valley and Sydney's Northern Beaches before it was ultimately secured by a couple from Maitland.
Mr Casey said the large block size and dual street frontage drew interest from buyers looking to subdivide the property and sell the section of land at the rear.
"The majority of people who made offers were planning to build the dream home as an owner-occupier as the front of the block and others tossed up looking into subdividing the back lot of land on Bennett Street to sell," he said.
"That potential to subdivide helped it get a few more buyers looking at it."
In addition to the large landholding, the property's ocean and beach views were a drawcard.
The home's balcony and living areas take in uninterrupted coastal views.
"The new owners are looking to build that coastal dream home on the beach, and it was the views that got it there in the end," he said.
"There has been talk that the market has softened but, at the end of the day, strong locations and strong views are still pulling buyers to achieve good prices."
It is the second property on High Street to fetch more than $3 million as a knockdown.
In August 2024, a 714-square-metre property at 13 High Street sold for $3.35 million at auction to a buyer who has since demolished the original three-bedroom house to rebuild.
"It sold as a knockdown but it was a genuine house that was liveable and rentable, whereas this property was quite run-down," Mr Casey said.
According to data supplied by Cotality, Redhead is the second most expensive house market in Newcastle and Lake Macquarie.
The median house value sits at $1,908,352, with values up 4.2 per cent over the quarter to June and a 12-month increase of 8.9 per cent.
A developer has snapped up a weatherboard cottage on a large block after seven buyers fought to secure the property.
The two-bedroom house, held for 37 years at 24 Hall Street, sold for $2.55 million with Mike Flook of Robinson Property.
Mr Flook said the property's 786-square-metre size was a drawcard for Newcastle and Sydney-based developers, with a local buyer winning out in the end.
The property was due to be auctioned this weekend.
"It was a fairly long campaign and we decided to put the hat around a week or two ago, and out of that we had seven pre-auction offers," Mr Flook said.
"80 per cent of the enquiry came from developers and there were a few that fell in love with the old home as well.
"The buyer will remove the house and put a really smart duplex on the site and the extra land area will allow them to do something pretty special."
It was the first time the house had been offered to market since selling in 1989 for $120,000, according to Cotality records.
Mr Flook has overseen a run of property transactions in Merewether in the past fortnight despite what he described as "quietened" market.
A four-bedroom house at 68 Curry Street sold as a renovation project for $1.85 million, and a three-bedroom house in its original retro condition at 43 Berner Street listed with a guide of $2.8 million, sold within a week on market to a local family for an undisclosed price.
Another renovation project at 27 June Street fetched $1.5 million and a modern four-bedroom house at 22 Coane Street, guided at $3.5 million to $3.8 million, is under offer for more than $3.5 million.
"There is no doubt the market has quietened off considerably and there is an undeniable amount of uncertainty and a lack of confidence," Mr Flook said.
"What I'm seeing is it's those buyers who have a need to buy, whether they have just sold or know exactly what they want, or the property stands out for all the right reasons."
