This article is from the Australian Property Journal archive
FOUR Sydney apartments blocks have been listed for a combined $35 million, banking on the extremely tight residential market across the city.
The apartment blocks include 66 Ernest Street, Crows Nest; 15 Fowler Street, Camperdown; 117-119 Foveaux Street, Surry Hills; and an asset in Coogee.
Toby Silk and his team from CBRE are managing the sales.
“Unit blocks are tightly held assets that offer diversified revenue streams, reducing dependency on a single occupant and enhancing stability. The relatively stable cash flow and the potential for long-term appreciation make them attractive to investors seeking steady returns and capital growth,” said Silk.
“The aggressive growth in residential rents as a result of the housing supply shortage is expected to continue, further reinforcing the strength of this asset class.”
The freehold apartment block at 66 Ernest Street in Sydney’s Lower North Shore comprises 15 residences with private balconies plus 18 parking spaces.
Occupying an 860.4sqm corner site with three expansive frontages to Ernest Street, Sophia Street & Ernest Lane boasts an estimated market gross income of $400,000 per annum.
The property at 117-119 Foveaux Street, Surry Hills is being sold in conjunction with The Rubinstein Group and comprises three two-bedroom and one one-bedroom apartments with a dual level penthouse and ground floor commercial space.
While 15 Fowler Street comprises nine two-bedroom apartments, five one-bedroom apartments and two commercial suites across 1,001sqm.
Finally, the Coogee apartment block includes eight one-bedroom apartments across a 396sqm internal area.
“Despite economic fluctuations, the demand for premium unit blocks in the property market remains robust,” said Luke Williams, manager at CBRE.
“Investors recognise the long-term value and stability these properties offer. Prime locations, high-quality amenities, and the prestige associated with such properties continue to drive their appeal. In today’s market, premium is not just a price point but a testament to quality, location, and enduring demand.”
Apartment approvals across Australia recently plunged to a 12 year low, while in Sydney apartments are increasingly being built to meet the needs of developers and investor-purchasers and not residents.
With Charter Keck Cramer’s most recent State of the Market highlighting the massive feasibility risk facing apartment projects, with project design a crucial factor in performance outcomes for these projects.
