This article is from the Australian Property Journal archive
THE Sydney unit block market is experiencing a rush of activity, with nearly $12 million in sales and four lots worth around $30 million hitting the market in quick succession.
The biggest deal was an apartment block and two townhomes on a 699 sqm block at 313 Bronte Road in Waverley selling for $9.25 million.
The Waverley property was sold by vendor Danny Caretti, who first moved into one of the units on the site as a student in 1980, and then over time purchased each unit in the block of four one by one from his landlady – who had also become his friend – Ena Harper.
Knight Frank agents Demi Carigliano and James Masselos in conjunction with Clint Ballard of Sotheby’s International managed the sale. They said 140 enquiries and six offers were made.
“It’s not often a property like this comes to the market in a sought-after location such as Waverley or the Eastern suburbs, and this one hadn’t been officially offered to the market since 1958,” Carigliano said.
The property offers an estimated total income of more than $340,000 per year, and also has approval in place for a storage room at the rear of the site.
Following the Waverley sale, a block of four apartments on 694 sqm at 40 Victoria Street in Penshurst was bought for $2.55 million by a private investor from the Coenig family, in a deal negotiated by Knight Frank’s Adam Droubi.
Droubi said the property sold prior to auction for a record low 3.5% gross yield, with 64 enquiries and three groups competing to exchange contracts on the property on the final day.
The Penshurst property has a potential total rental of $98,800 per year. It has four large townhouse style apartments, each with its own lock-up garage, the block is near Penshurst and Mortdale train stations..
Pirrottina said buyers want unit blocks largely for the income, made more attractive by ongoing rental growth in Australia, and the replacement value of these properties also continues to rise due to inflation.
“Many vendors are taking their unit blocks to the market to capitalise on the current strong demand.
Knight Frank has just listed for sale $30 million worth of unit blocks.
About $7 million is expected for a four-level block of 16 apartments on a 1,277 sqm site at 5-7 Windsor Road in Merrylands, which has potential rental income of more than $484,000. Laing & Simmons in Parramatta is the conjunctional agent.
A similar figure is tipped for a block of 10 apartments at 1 Sparkes Lane in Camperdown. The fully leased block presents as-new and can return more than $390,000.
In Bondi, a block of six apartments at 3 Moore Street will also likely fetch $7 million. That block has a total market rent of more than $353,000. Meanwhile, an art deco block of four apartments on 88 Francis Street in Bondi Beach, known as “The Pines” has expectations of $6.5 million. It has a total market gross income of more than $270,000 and DA approval for alterations and additions to transform the block.
