Two tiny homes will go under the hammer in Melbourne this month ??? the first auction of its kind.
It will be a big test for tiny houses, an emerging sector of the property market. As the small-scale living movement continues to gain traction in Australia, more builders and manufacturers are jumping on the bandwagon.
Father and son duo Paul and Indi Hangan have worked in construction for years but entered the tiny house industry at the start of this year.
Their Ringwood-based business, Tiny Homes Australia, employs 14 carpenters and builders who design and build tiny houses. And business is booming.
"Tiny houses are interesting because they are sort of a house, sort of a caravan, sort of moveable, and they're definitely cheap," Paul Hangan said.
"There's lots of people that are interested in them ??? from a real estate point of view [and] from a business point of view."
Among those in the market for a tiny house are parents looking for additional space for a teenage child, workers seeking an office at home and prospective accommodation providers.
They've proven particularly popular in the short-stay sector as an alternative to caravan parks or bed and breakfasts.
"They are renting on Airbnb for $200 a night," Mr Hangan said.
The idea to hold an auction came about after the Hangans noticed their open for inspections were attracting strong interest.
They will be selling two models under the hammer at their Ringwood headquarters on Saturday, November 18.
The first model is larger, with a pitched roof and a loft bedroom, retailing for $79,000 while the smaller single-level model normally costs $59,000.
But Mr Hangan said prospective buyers could snap up a bargain on auction day.
"Our reserve will be cheaper than they will pay if they were coming back to us in two weeks' time," Mr Hangan said, adding that the homes were fully furnished.
"If nothing else, auctions always create a lot of hype."
It's not the way Tiny Homes Australia typically do business. They pride themselves on providing clients with the opportunity to customise a tiny home at the design, construction and finishing stages.
But if the upcoming auction goes well, Mr Hangan said they would consider selling more under the hammer.
"If I could find a model that I knew people wanted without any changes then I think we would be happy to auction them regularly.
"But if we find that every single person wants to put their own little touch on it, then the auction model doesn't really work as well.
"We'll learn that as we go along."
The auction itself will involve less paperwork and legal jargon than other houses, said auctioneer Mitchal Towns from Philip Webb Real Estate.
"We don't have to follow the same rules and regulations you would if it was a residential home with a title attached to it, so it's going to be a little bit more fun," he said.
Mr Towns said the inspections and auction sought to provide people with an opportunity to inspect the product and learn more about them. "Everyone has an interest in it but no one has been able to see it," he said.
The auction will be held at noon on November 18th at 36 New Street, Ringwood.
