The house at 39-41 Hopetoun Road, Toorak, was initially listed at 17-18.5 million. However, like many homes at the top end of the market, the price has been reduced to 14.5 million.
The land size of 1,665 m2 is significant, and Hopetoun Road, Toorak, would be in my top 10 streets.
This home last sold in June 2022 for $13,555,000. Since then, the current owners have engaged Christopher Doyle Architects and Paul Bangay, a garden guru, who aren’t cheap names to engage, and having approved plans with permits in hand on a heritage asset in Toorak is genuinely rare. That work typically costs significant time & money.
If an experienced builder acquires at or near ask and executes the approved design:
Estimated Purchase price 13-14M – Plus stamp duty of $900,000-$1,000,000
Build cost (prestige heritage restoration + extension to approved plans): realistically $7-10 million for this scale and quality, with 7 ensuite bedrooms, underground parking for 7, tennis court, resort pool, lift, wine room, and golf simulator. All the bells and whistles.
Holding costs: $1.5M–$2M
All-in cost: approximately $22M-25M
Resale: your range, depending on the market, is circa 25-28 million, not a huge profit for the time and money involved.
The margin at that level is tight unless you’re at the lower end of the build cost. Who this suits is an experienced heritage builder operating at cost. They can potentially make this viable. But you’re still relying on the market to bounce.
Most builders in Toorak would prefer to knock down and rebuild brand-new, avoiding the headaches that come with heritage facades, council and planning delays. Stonnigton Council are not always easy to work with.
Summary of 39-41 Hopetoun Road, Toorak.
For the right buyer, a builder who lives in it during or after construction, or a developer with in-house capacity, this is a unique opportunity. The permit helps you start straight away, and the street is in our top ten for Toorak. If you buy this at the right price and the market swings in your favour, you could be rewarded.
We also have access to an off-market, brand-new home on this exact same Hopetoun Road in Toorak. The asking price is 28-30 million, and it is built by one of Toorak’s most sought-after builders.
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For more information on this home and other homes in Toorak, please contact Andrew Date on 0402 346 810
Industry Insider Property
Level 3, 489 Toorak Road, Toorak 3142
