Sprawling ‘forgotten’ housing complex selling for bargain price

A massive property with huge potential that was built to house hundreds of workers constructing the Snowy Hydro Scheme has hit the market for less than the cost of a typical apartment.

The five-acre property has been listed as an online auction with a starting bid of $520,000, although given its rundown condition it could cost a lot more to get the whole building into a habitable state.

The massive building is located in Khancoban, a town that was rapidly built during the 1960s to house workers building the power stations, dams and aqueducts that made up the Snowy Scheme.

The rundown five-acre property has been listed for auction with a starting bid of $520,000. Picture: realestate.com.au/buy

With a total floorspace of 946sqm split across two residential wings connected to a central structure, the property has more than 120 rooms including multiple dining halls and commercial kitchens.

The west wing was converted into residential units in the 1980s, which are in reasonably good condition, according to sales agent Luke Tozer of McGrath Snowy Mountains.

The current owner converted half the building into residential units in the 1980s. Picture: realestate.com.au/buy

But while some work has been undertaken to convert the rest of the building, the project was put on hold by the owner, meaning much of the building is in a sad state after being exposed to the elements over the years.

“It has 12 units you could live in tomorrow,” Mr Tozer said. “Works have been completed to start gutting the second part of the building, but they left it unfinished and weather has got in.”

The other half of the property is in a rundown state, having been exposed to the elements. Picture: realestate.com.au/buy

Parts of the roof are missing, allowing the rain and wind to cause further damage and filling the interior with dirt and debris.

“I’m not going to sugarcoat it, this property does require a lot of work,” Mr Tozer said.

With several roof panels missing, the building is no longer weathertight, allowing dirt and debris to build up. Picture: realestate.com.au/buy

Furniture, building materials and even a piano and an old billiards table have been left throughout the property, providing clues to its former life as a housing complex for hundreds of people.

Mr Tozer described it as “a work in progress”, but said that despite its rundown state, there were no rectification orders in place, meaning the new owners could get straight to work.

Furniture and building materials are strewn throughout the property. Picture: realestate.com.au/buy

“I would say it’s been forgotten about,” Mr Tozer said. “It’s just become a project that’s too big for the owner.”

Mr Tozer said the building had a huge scope for transformation, with potential creative uses including a hotel, wedding venue or school camp, subject to the relevant approvals.

“With so much potential, this property could be used as a destination for someone with a vision and funds to bring it up to a more modern standard,” he said.

With multiple commercial kitchens and large dining halls, the property already has some existing infrastructure, albeit in a rundown state. Picture: realestate.com.au/buy

Khancoban has a population of 319 and is reasonably remote, located about two hours from the nearest regional centre of Albury, and about five hours from Melbourne and six hours from Sydney.

“It’s a very rural area and it has a gorgeous outlook,” Mr Tozer said.

With scenic surrounds and proximity to the snowy mountains, the property has potential as an events venue or holiday accomodation, according to the agent. Picture: realestate.com.au/buy

Initially advertised with a $380,000 auction guide, the sale has since been converted to a timed online auction given the level of interest, with a starting bid of $520,000.

By comparison, Australia’s median unit price is $562,000, according to the latest PropTrack Home Price Index.

The affordable price point has already attracted a plenty of enquiries, Mr Tozer said, especially from buyers in Sydney and Melbourne inspired to take on their own Escape to the Chateau-style undertaking.