Sydney eastern suburbs blocks attract strata investor interest
Brantwood Hall, a block of 13 apartments in Edgecliff, in Sydney’s eastern suburbs, has been listed for October 27 auction.
The New South Head Road listing is under instructions from receivers. It’s tipped to fetch more than $5 million.
The four-floor Art Deco block comes with 12 apartments with one bedroom, living room plus sunroom each totalling about 58 square metres. There is also a three-bedroom penthouse with about 300 square metres of top-floor space including balcony. It has possible strata conversion potential, according to its Ray White Double Bay listing agent Craig Pontey.
Its current gross annual return is $270,000. After renovations with new kitchens in 1986 it was $110,000, reflecting just 3.6% annual growth during the past 25 years.
“The gross annual rental could be improved,” says conjunctional Ray White agent Violet Farebrother.
Woollahra Council rates are $2,058.27 a quarter. The water rates are $1,567.65 a quarter.
Buyers have been given comparables of similar blocks that have been sold recently or provide a good indicator of the market.
83 Oakley Road, North Bondi
Sale Date: July 2011
Sale Price: $2,800,000 (as advised by APM)
Land Area: 493 m2
Equated Market Net Yield: 3.02%Description: Improvements incorporate a refurbished block of 4 x two bedroom plus sunroom flats with single garage. Flat areas of approx. 103 m2 each. Estimated gross annual income of $117,321, which may be dissected as $550 per week for each of the four flats and an additional $50 per week for the single garage. Equated net income of $84,696 per annum. This sale equates to $700,000 per flat or about 3% net yield per annum.
8 Stafford Street, Double Bay
Sale Date: June 2010
Sale Price: $5,275000
Land Area: 428m2
Equated Market Net Yield: 3.26%
Zoning: Residential 2(b)Description: Improvements incorporate a similar-type, older style, residential flat building providing 9 x 2 bedroom, strata title units. Gross annual income at time of sale was advised at $226,561 per annum, or an equated net yield of about $172,186 per annum. Our analysis indicates this sale occurred at the rate of about 3.26% net. Total accommodation floor area for the nine units was advised at 543m2 which indicates a sale price at the rate of about $9,714 per m2 of living area.
118 Warners Avenue, Bondi Beach
Sale Date: May 2010
Sale Price: $5,310,000
Land Area: 419 m2
Equated Market Net Yield: 3.64%Description: Improvements incorporate a refurbished block of 6 x three bedroom units (approx. 95m2 each) with 3 x open carspaces. Some units with ocean views. Strata title block. Gross annual rental of $241,800 per annum. DA for conversion to 10 apartments (as advised by selling agent)
124 O’Brien Street, Bondi Junction
Sale Date: November 2009
Sale Price: $2,115,000
Land: 401 m2
Equated Market Net Yield: 3.94%Description: Improvements incorporate an older style block of 4 x 2 bedroom plus sunroom flats (approx. 80m2 each) and 2 x single lock up garages. Gross annual rental as advised at $85,536 per annum. Under rented. Adopted gross market rental at $104,286 per annum. This sale equates to $528,750 per flat.
5 Salisbury Road, Kensington
Sale Date: May 2010
Sale Price: $4,205,000
Land: 675 m2
Equated Market Net Yield: 3.57%Description: Improvements incorporate a circa 1960’s/70’s block of 9 x two bedroom units with 9 x lock up garages. Advised gross annual rental at $158,000 per annum. Under-rented. Adopted gross market rental at $187,714 per annum ($400 per week each). This sale equates to $467,222 per flat.
48 Wiley Street, Waverley
Sale Date: May 2010
Sale Price: $2,207,500
Land Area: 326 m2
Equated Market Net Yield: 3.78%Description: Improvements incorporate an older style block of 4 x 2 bedroom apartments with DA approval for strata subdivision. Sold with an advised gross annual income of $91,250. Under-rented. Adopted gross market rental at $104,286 per annum. ($500 per week each). This sale equates to $551,875 per flat.
16 Figtree Avenue, Randwick
Sale Date: June 2009
Sale Price: $2,350,000
Land Area: 487 m2
Equated Market Net Yield: 3.97%Description: Improvements incorporate a block of 4 x 3 bedroom flats (approx. 89m2 each) with 2 x single lock up garages and car-spaces. Gross annual rental as advised at $99,000 per annum. Under rented. Adopted gross market rental at $116,480 per annum ($560 per week). This sale equates to $587,500 per flat.
