A property at a prized location could sell for a million dollars less than it would normally be worth because it contains an immovable object.
The narrow plot, which is just 235sq metres, is situated in the leafy suburb of Longueville on Sydney‘s lower north shore.
It appears to be a rare gem, but there is a significant catch.
It comes with a large shed-sized electrical substation and the new owners will not be able to remove it.
The land was previously been owned by Ausgrid and it holds an easement over the site.
It means the company has permanent legal rights to access and maintain the substation, even if the property changes hands.
Belle Property agent Joshua Jarvis told Daily Mail Australia the new owners would also not be able to build on the first 6.1m of the property.
But he said it should be sold at auction on Saturday for a bargain thanks to the substation.
This substation on a Longueville property will impact its sale price
The 24A Kenneth Street property is in a prized location
‘It will definitely influence the result. It would be worth a significant amount of money but this will limit the sale price,’ Mr Jarvis said.
‘If it sells for what we’re being told, it will be a million-dollar discount.
‘This is what the buyer feedback is telling us. It is an auction though so you never know.’
The big green substation boxes can be seen all over the country but rarely are they located on a private residence.
The new owners can only remove it if Ausgrid allows them to.
Ausgrid also has full rights to enter the property to operate and upgrade the substation.
Mr Jarvis said if potential owners could put up with the substation and Ausgrid staff turning up to conduct work on it, they’ll secure a bargain in a great location.
‘It presents an exciting opportunity for someone to try and maximise the potential of it,’ he said.
Ausgrid workers can enter the property to work on the substation
The new owners will be told on Saturday that interfering with the infrastructure could lead to legal consequences.
Belle Property said there could be workarounds, such as integrating the substation into the home’s design, or using screening and landscaping to soften its presence.
‘This compact block offers endless potential. A rare find in a tightly held enclave,’ Belle wrote on the online listing, which doesn’t offer a price guide.
In Longueville, the median house price is $5.66million.
Mr Jarivs said due to the unique nature of Kenneth Street, they are not currently quoting a price guide but it will sell for hundreds of thousands less due to the substation.
Meanwhile, in 2023, a family made the rookie error of ‘not paying attention to’ the land survey before building their dream home.
They were left shattered after discovering an ‘unattractive’ green box centimetres from their bedroom windows during a check-up.
The transformer box was always set to be installed in the spot, but the family said they didn’t realise before building started.
