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ACT buyers snap up former Mr Fluffy asbestos homes

Jasmine De Martin

Canberra’s controversial Mr Fluffy demolition and buyback scheme reached a milestone last week, with just over half of the loose fill asbestos-affected homes being sold back on the market, at a total value of $379.6 million – yet are original owners “priced out”?  

Of the 1,023 affected properties originally purchased by the government at a total cost of $678.9 million, 42 cleared blocks were sold back to original owners through ‘first right of refusal’ sales for a total of $32.5 million, five blocks were sold to the government for $2.3 million and 520 were public sales for $344.8 million, according to the ACT Government Asbestos Response Taskforce’s January data.

The overall average sale price was $677,540.

mr fluffy asbestos sign

Signage for houses affected by ‘Mr Fluffy’ loose fill asbestos. Picture: Getty


Yet with a slew of private buyers, builders and developers attracted to the cleared homes, the public sales of the demolished blocks remains a sensitive issue, with the buyback scheme considered by Mr Fluffy home owner support groups and the opposition as not in the original homeowner’s favour.

Deputy territory opposition leader Nicole Lawder said the low number of blocks bought back by original owners was a concerning issue. “It could be that the government has priced Mr Fluffy homeowners out of the market,” she said.

Previous Mr Fluffy homeowner and spokesperson of the Mr Fluffy Homes Full Disclosure Group Felicity Prideaux agreed, stating that: “Many owners simply could not afford to purchase their land back. The market had changed dramatically since our homes were valued.”

“I didn’t even go in for First Right of Refusal as I knew there was no way I could afford to buy back,” she added.

Prideaux’ property was bought by the ACT Government through the buyback scheme for a total value of $780,000, with the cleared land since selling at market for $810,000.

“After paying for rent while the home was demolished, with no compensation offered for the upheaval of a home business, I had no choice. I could not afford to buy the land back, and then build a new home as well,” said Prideaux.

The latest progress map on demolitions under the Mr Fluffy asbestos response taskforce in Canberra, as of 31 December 2017. Picture: Supplied


When the Loose Fill Asbestos Eradication Scheme was first announced in 2014, “it was made clear to homeowners that that First Right of Refusal offers for remediated blocks would be based on the market value of the block at the time it becomes available for resale,” said a spokesperson for the Asbestos Response Taskforce.

‘“The property market has moved significantly across Australia since the scheme was announced and Canberra is no exception,” they added.

Despite the ongoing controversy, the sale of the released blocks has continued across Canberra, with properties in high demand.

More than 100 blocks went under the hammer in August last year, with nine sales reaching into the millions. The suburb of O’Connor in the inner north was a hot spot, with three sales recorded ranging between $1.2 million to $1.5 million.

According to Mr Fluffy planning rules, any block over 700sqm can be subdivided and developed as dual occupancy; in a residential development boom, this is an attractive purchase for buyers, as many of the My Fluffy blocks are located in established suburbs, close to developed community infrastructure, transport and amenities, and previously may not have been zoned as dual occupancy.

9 Hargraves Crescent Ainslie

Zeljko Gashparac renovated and sold 9 Hargraves Crescent. Picture: realestate.com.au/buy


After renovating and selling his four-bedroom Ainslie home, Zeljko Gashparac purchased a 973sqm Mr Fluffy block in Hackett.

Gashparac’s primary motivation was based around a retirement plan for himself, opting to create two homes on the large block: one for himself to live in and another to sell or rent.

“It’s a slightly elevated corner block in Hackett, close to the shops, Mount Majura Reserve and it faces a park,” said Gashparac.

Hoping to have both homes completed by late November this year, Gashparac said that because the blocks have already been re-zoned, DA classified and have clear restrictions, the design and build was a streamlined process.

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