Four Sydney apartment blocks have sold for a combined total of just over $40 million across a single week.
The sites in Cremorne, Glebe, Paddington and Woollahra account for 63 apartments, with the blocks sold at an average gross yield of 3.27%.
They were primarily deceased estates, held in the respective families for an average of 50 years, and purchased by individual, high-net-worth private investors.
CBRE managed the sales of 2 Sutherland Street in Cremorne, 20 Alexandra Road in Glebe, 21 Cooper Street in Paddington and 113-115 Edgecliff Road in Woollahra.
Combined, they attracted more than 2,500 enquiries and 250 inspections, with 100 prospective buyers requesting contracts and bidding for properties.
Nicholas Heaton, Jason Lowry, Paul Grasso and Matthew Fenn from the CBRE Metropolitan Investments team led the campaigns.
“There was significant interest in all four listings,” Mr Heaton, Head of Private Clients, said.
“We are moving into a market where yield is everything, as a result of such a low return on money in the bank.”
The Woollahra property contains the most individual apartments at 24, followed by 22 in Cremorne, 12 in Glebe and five in Paddington.
“Our buyers are coming from all over Sydney,” Mr Lowry said.
“They will consider apartment blocks on the North Shore, Eastern Suburbs, city fringe, Inner West and South Sydney; they just want to be within 10km of the Sydney CBD, where vacancy rates are low and renting the apartments is easy.”
The CBRE apartment block sales team has sold 26 apartment blocks and nearly 500 apartments in 2019.
It has also noted a shift in yields from approximately 4.5% to 3.5% in the past three months amid interest rate cuts.
“The Inner West is the number one priority for investors when it comes to submarkets within Sydney, given the forecast investment in infrastructure,” Mr Fenn said.
“Significant population growth is anticipated for the Inner West, which creates the best environment for rental growth.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
