The beach shack in Melbourne was sold for $500,000 more than other shacks 500m away. Here’s the reason why.
A beach shack on Melbourne’s Mornington Peninsula has sold for more than half a million dollars, doubling the price of sheds just 500 metres to its north.
Only half a kilometre separates the beach shacks on North Beach and South Beach, but after the latest sale, there is now about a $500,000 difference in price.
A tiny beach box was recently sold for $650,000 on South Beach.
The cost of the beach box works out to be $26,000 per square metre. An average house that cost this much per metre would be around $6 million dollars.
Danckert Real Estate director Alex Corradi told news.com.au locals near South Beach wouldn’t blink at the eye-watering amount.
“All things are relative right? The homes about South Beach are known as the Golden Triangle, these homes normally sell around for around $10 million while homes on North Beach are about $2 million,” he said.
He added the house prices were reflected in the cost of the sheds at North and South Beach.
“Last year, shacks on South Beach were selling for about $500,000, since this recent sale has pushed higher than that you’d expect others to follow. While shacks on North Beach sell for about $150,000 to $200,000,” he said.
“Aside from the houses above them, the main difference between the north and south sheds is the amount of sand. Water can get as close as one to two metres away from sheds on the north beach and people don’t like that. On the South Beach, there are about 50 metres of sand between the water and the shed.”