Apartment block enquiries soar as 50m portfolio hits the market
Apartment block enquiries soar as $50m portfolio hits the market
| 18 September 2019
CBRE has identified a 48 percent uplift in enquiry for Sydney apartment block sales in the past year.
The asset class now receiving twenty percent more enquiry than office, development sites or retail investment asset classes, with CBRE fielding 26,000 enquiries for apartment block properties in the past year, including 3,500 in the last month.
Mr Heaton commented; “Apartment block investments offer buyers a far greater yield than the return offered by banks or bonds, with far less risk. The icing on the cake is the ability to strata and sell down or totally redevelop in the future, driving higher returns over the life of the investment.”
Gemma Isgro, Associate Director, Metropolitan Investments said; “Apartment block buyers are looking to purchase an investment vehicle with an initial return of around three to four per cent. These investments also provide a land bank for future redevelopment, potentially seeing strong total returns of around 10 per cent,” Ms. comments.
While apartment blocks are traded regularly, CBRE is the first and only real estate agency to create a specialised team focusing on this asset class.
“Previously vendors turned to their managing agent to sell apartment block assets but with the creation of the CBRE Apartment Block team five years ago we are uniquely positioned to offer vendors a broader reach of buyers locally, interstate and offshore,” Mr Heaton noted.
Recent CBRE managed apartment block sales have bucked the trend of low buyer activity in the traditional residential apartment market, including:
- 20 Alexandra Street, Glebe with 660 enquiries generated and a sale price of$5.25m, translating to a gross yield of 3.1%
- 10 Henrietta Street, Waverley with 460 enquiries generated and a sale price of$20m, translating to a gross yield of3.1%
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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.