Two Sydney Unit Blocks Sell in One Day for a Total of $13.13 Million

Two Sydney unit blocks have been sold in one day at auction for a total of more than $13 million as the property type continues to be in demand.

A nine-bedroom apartment block on a rare 808sq m landholding at 143 Clovelly Road in Randwick, in Sydney’s eastern suburbs, sold for $9.1 million, while a six-unit block at 33-35 Kensington Road in Summer Hill in Sydney’s inner west sold for $4.03m

Both properties were purchased by local high-net-worth investors adding to their existing portfolios. The Randwick property has nine two-bedroom units, each with its own balcony and dedicated car space.

The auction campaign, run by Knight Frank agents James Masselos, Demi Carigliano and Anthony Pirrottina, attracted 185 enquiries and more than 20 inspections, and saw the property sell for a 2.95% yield.

The Summer Hill property consisted of six apartments – four one-bedroom apartment and two two- bedroom apartments, as well as parking on an expansive landholding of 929sq m, situated just 300 metres from the Summer Hill train station.

The auction campaign, run by Knight Frank agents Adam Droubi and James Masselos of Knight Frank, resulted in more than 170 enquiries and four competitive bidders on the day, with the property selling on a 3.44% gross yield.

Mr Masselos said both properties had a competitive auction, drawing very strong interest from investors, land bankers and developers alike.

“For the Randwick property, buyers were drawn to the opportunity’s strong passing income, significant rental uplift and future repositioning potential,” he said.

“The Summer Hill block, which had come to the market for the first time in 60 years, drew strong attention due to the property’s generous land size, proximity to Summer Hill station and potential for future alterations, with the possibility of redevelopment or renovation.

“Both properties had excellent income, but also scope for rental uplift.

“They were also in sought-after locations, close to plenty of amenity and transport options.”

Mr Pirrottina said unit blocks continued to be a popular property type for buyers in the current market.

“With demand for housing continuing to outweigh supply, unit blocks are a smart investment for buyers,” he said.

“We have seen strong rental growth in recent years and very low vacancy, so unit blocks come with low risk.

“It’s clear that the most sought-after unit blocks in Sydney are those in good locations, close to plenty of amenity, including transport, as these will be the easiest to attract tenants and will see strong growth in the underlying land value.”