Sydney apartment blocks have emerged as one of the city’s most sought-after investment assets following a string of recent sales.
CBRE Associate Director Gemma Isgro said buyer interest had increased substantially in 2019, with the firm having fielded over 5,000 enquiries for available assets in the past three months.
The heightened interest has resulted in several significant transactions, including the $5,000,000 sale of a block of seven units at 686 Old South Head Road, Rose Bay to a private, high net worth family from Dover Heights.
A block of five units at 70 Blair Street, North Bondi meanwhile transacted for $5,750,000 to an offshore family based in Hong Kong.
Ms Isgro noted that each campaign had generated over 300 buyer enquiries.
“We believe the spike in interest for apartment blocks has been spurred by the potential changes in negative gearing and capital gains tax, with buyers looking to invest before any new legislation comes into effect,” Ms Isgro said.
CBRE’s NSW Head of Private Clients, Nick Heaton, said the next test of the market involved 10 Henrietta Street, Waverley - one of the largest unit blocks in Sydney’s Eastern Suburbs.
The block of 27, two-bedroom units was built in the early 1970’s by the Bergman family and has been held in the same ownership since construction.
Situated on a significant 2,309sqm parcel of land, the block is being offered for sale via an international Expressions of Interest campaign.
“Many of the blocks of units we sell have a similar background to ownership,” Mr Heaton said.
“They are traditionally held by families for decades and are passed down through the generations. Investors like these assets because they provide security of cashflow and are easy to maintain for long-term family ownership.”
CBRE Associate Director Gemma Isgro said buyer interest had increased substantially in 2019, with the firm having fielded over 5,000 enquiries for available assets in the past three months.
The heightened interest has resulted in several significant transactions, including the $5,000,000 sale of a block of seven units at 686 Old South Head Road, Rose Bay to a private, high net worth family from Dover Heights.
A block of five units at 70 Blair Street, North Bondi meanwhile transacted for $5,750,000 to an offshore family based in Hong Kong.
Ms Isgro noted that each campaign had generated over 300 buyer enquiries.
“We believe the spike in interest for apartment blocks has been spurred by the potential changes in negative gearing and capital gains tax, with buyers looking to invest before any new legislation comes into effect,” Ms Isgro said.
CBRE’s NSW Head of Private Clients, Nick Heaton, said the next test of the market involved 10 Henrietta Street, Waverley - one of the largest unit blocks in Sydney’s Eastern Suburbs.
The block of 27, two-bedroom units was built in the early 1970’s by the Bergman family and has been held in the same ownership since construction.
Situated on a significant 2,309sqm parcel of land, the block is being offered for sale via an international Expressions of Interest campaign.
“Many of the blocks of units we sell have a similar background to ownership,” Mr Heaton said.
“They are traditionally held by families for decades and are passed down through the generations. Investors like these assets because they provide security of cashflow and are easy to maintain for long-term family ownership.”
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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.
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.
