Enquiry Levels At All-Time High For Residential Blocks

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 Crescent, Gladesville in New South Wales 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 has two blocks of units currently for sale - 818 Victoria Road, Ryde, and 31 Chelsea Street, Redfern.

818 Victoria Road, Ryde, is a three storey property and comprises of 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 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.”