Mr Fluffy Update

The first of many auctions selling land acquired by the ACT Government under the Mr Fluffy buyback scheme have been held. All of the blocks were purchased by the Government and cleared of asbestos under the demolition scheme. Before the auction, the blocks were offered back to their previous owners at an off-market rate.

The auctions for the first 5 properties saw 120 attendees at the auction and close to 170 attendees at the auctions for the second 5 properties.

The first 5 blocks for auction were in Pearce, Duffy, Waramanga and 2 blocks in Chapman. The Waramanga block attracted the lowest price, selling for $476,000. The land in Duffy sold for $480,000, the Pearce block sold for $605,000, and the Chapman block sold for $610,000.The second Chapman block failed to reach its reserve price and was passed in at $660,000.

The second 5 blocks for auction were in Scullin, Fraser, Downer, Campbell and Macgregor. The Macgregor block attracted the lowest price, selling for $392,000.The Land in Scullin sold for $398,000, the Fraser block for $455,000 and the Downer block for $592,000.The Campbell block failed to reach its reserve price and was passed in at $990,000

The prices of the nine sold blocks were between 12 per cent and 68 per cent above each block’s unimproved value.The proceeds will go toward paying off the buyback scheme, which was financed with a $1 billion loan from the Commonwealth.

These blocks are a unique product to the Canberra market, enabling purchasers to build in an established suburb, many of which are in tightly held areas

More than 1000 homes across 56 established Canberra suburbs have been identified as Mr Fluffy homes and demolitions will take place over the next few years. Owners of 690 of the houses have taken up a first right of refusal and will return and rebuild on their remediated blocks. The reserve price on each block at auction will not be less than the amount offered to the former owners.

The Land Development Agency, the Asbestos Response Taskforce and agents will review the first phase of the Mr Fluffy sales, with the next round of auctions due to begin in May.