Enquiry levels at all-time high for residential blocks

Sydney, 17 August 2014- Residential unit blocks are experiencing unprecedented levels of enquiry, as investors and developers look to take advantage of strong rental growth and capital gains.

CBRE recently sold 25 Western Cresent in Gladesville, after receiving over 150 enquiries in the five week campaign. The nine two bedroom units were sold in one line and attracted 8 bidders at auction, eventually selling for a price of $4.035 million.

CBRE currently have two blocks of units currently for sale - 818 Victoria Road in Ryde and 31 Chelsea Street in Redfern.

818 Victoria Road, Ryde is a three storey property and comprises 18 two bedroom strata units, all with parking and balconies. 31 Chelsea Street, Redfern comprises 15 one bedroom units in Sydney’s booming CBD fringe market. The four storey property benefits from car spaces with every unit.

Both go to auction on 27th August and have already received over 70 enquiries each.

Peter Vines from CBRE said the average number of enquiries for commercial property is around 50 over the length of a campaign, so these unit blocks are charting significantly higher.

“These type of properties don’t come to the market very often so the demand is extremely strong due to the solid fundamentals that this style of asset offers, including strong rental, capital growth and overall, a potential to add-value to the property,” Mr Vines said.

“We are seeing a mix of private investors and developers enquire about the blocks. Private investors (who are often purchasing for their SMSF) are attracted to the strong residential leasing market and the constant flow of income. Some also choose to renovate as each unit becomes available and increase the rent.”

“Developers see the units as good investments and generally choose to renovate the block before selling each unit individually, especially in the current hot residential sales market.”

For more information on 818 Victoria Road, please contact Peter Vines on 0449 857 100 or Frank Oliveri on 0419 018 356. For more information on 31 Chelsea Street, please contact Tim Grosmann on 0421 042 722 or Nick Heaton on 0408 025 097.