_Unit block sales tip over $42 million in Sydney

• A block of 13 units at 128 Parramatta Road in Camperdown has sold for $8.8 million
• It follows five other sales of unit blocks over the past three months, with total sales in Sydney for Knight Frank now amounting to more than $42 million
• As buyer demand for unit blocks continues to be strong, vendors are responding by putting their properties on the market, with Knight Frank set to take another three blocks to the market
• Each block of units taken to the market has attracted significant buyer interest from a wide range of investors, with half selling to overseas investors on a sight unseen basis

A Sydney unit block has sold in yet another transaction involving the property type, with Knight Frank’s recent sales in the city now totalling more than $42 million over the past three months.

A block of 13 units at 128 Parramatta Road in Camperdown, with one retail/commercial space on the ground floor, was purchased for $8.8 million by an overseas private investor from Belcorp.

The sale of the property, which has around 1,500sq m of building area, was negotiated by Anthony Pirrottina, Demi Carigliano and Adam Droubi of Knight Frank following an Expressions of Interest campaign.

The block has a mix of studio, one and two-bedroom units and is fully leased, with a staggered lease expiry profile, providing opportunity for significant rental uplift over the coming months.

The property currently has a gross passing income of just over $535,000 per year, but is estimated to have a potential gross income of $559,000.

The sale brings Knight Frank’s recent sales for unit blocks to a total of more than $42 million over six sales over the past three months, with other recent sales including:

• A near-new block of 10 apartments on a 400sq m block at 1 Sparkes Lane in Camperdown sold for $7.4 million in a deal negotiated by Knight Frank agents Demi Carigliano, Anthony Pirrottina and Adam Droubi.
• A four-level block of 16 strata-titled apartments on a 1,277sq m site at 5-7 Windsor Road in Merrylands with on-grade parking sold in one line for $7.5 million in a deal negotiated by Knight Frank agents Adam Droubi and Jessen O’Sullivan in conjunction with Ray Fayad of Laing & Simmons in Parramatta.
• An art deco block of four units at 88 Francis Street in Bondi Beach, known as ‘The Pines’, sold for $6.9 million, equating to $1.725 million per unit, prior to the close of an EOI campaign run by James Masselos, Adam Droubi and Demi Carigliano of Knight Frank.
• An apartment block and two townhomes on 699.3sq m at 313 Bronte Road in Waverley recently sold in one line for $9.25 million in a deal negotiated by Knight Frank agents Demi Carigliano and James Masselos in conjunction with Clint Ballard of Sotheby’s International.
• A block of 4 apartments at 40 Victoria Street in Penshurst was sold for $2.55 million in a deal negotiated by Knight Frank’s Adam Droubi.

As buyer demand for unit blocks continues to be strong, vendors are responding by putting their properties on the market, with Knight Frank set to take another three blocks to the market.

An art deco block of six three-bedroom apartments at 18 Church Street in Randwick is being taken to the market via an Expressions of Interest campaign, with price expectations of $8 million. The unit block occupies a 364sq m site in a prime Randwick location, moments from the suburb’s best retail, transport and entertainment offerings, and has price expectations

Meanwhile, a near-new block of five units at 27 Church Street in Camperdown is up for sale, with price expectations of up to $4 million. The block, which has a mix of one and two-bedroom fully-leased units, will be sold via auction in mid-October.

A block of nine apartments at 168 Coward Street in Mascot will also be taken to the market via an Expressions of Interest campaign run by Knight Frank, with price expectations of $5 million. The block, situated on a 694sq m site just 600 metres from the Mascot train station, is ripe for renovation, offering strong rental upside and growth.

Knight Frank’s Anthony Pirrottina said buyer demand for unit blocks continued unabated, and more vendors were putting their properties on the market amid strong sales results.

“We have sold six properties in the past three months, with another three coming to the market,” he said.

“It’s no secret that Australia’s residential market is strong, with demand for housing outweighing supply, and this is the key fundamental that makes unit blocks such a strong, stable investment.

“Each block of units we have taken to the market has attracted significant buyer interest from a wide range of investors, including strong demand from overseas high net worth investors.

“In fact, half of the unit blocks recently sold have been purchased by overseas investors on a site unseen basis – they never even inspected the property in person, but believed in the investment fundamentals of the property.

“As a result of the recent strong sales results for our vendors, we continue to have more vendors come to us looking for the same results.

“We expect this will be a very active part of the market for the remainder of the year at least, and likely moving into next year.”

Mr Pirrottina said the unit blocks being sold were in densely populated, highly sought after areas of Sydney, which was an added attraction for buyers.

“These properties are generally close to transport and other amenity including shops,” he said.

“They all offer strong returns, being fully leased, and some offer the potential for improved returns via rental reversion and renovations, in addition to the strong rental and value growth to come as supply in the housing market remains constrained.

“With construction costs and inflation continuing to be high, unit blocks offer buyers a chance to purchase below replacement cost, giving them an immediate uplift.”