The eastern suburbs has seen a flood of apartment blocks come to market this year as investors look to cash in on strong capital gains recorded during the boom
A property investor is looking to capitalise on the recent growth in apartment prices with the purchase of a unit block in the inner Sydney suburb of Kingsford.
The purchaser paid $13 million for the 1391 sq m property comprising of eight apartments including six three-bedroom apartments and two five-bedroom apartments, along with 14 car spaces.
The deal brokered by Ray White Commercial South Sydney listing agent Phillip Elmowy and Michael Khouri is a financial win for the vendor who paid $11 million for 54-56 Meeks St.
Realestate.com.au reveals the median property price of a two-bedroom apartment in the suburb is $865,000 and $1.212 million for a three-bedder. A sale price of $13 million has roughly seen each apartment sell for a hefty premium of $1.625 million.
Mr Elmowy said the investment opportunity attracted plenty of interest due to the fact it was built in 2010, plus proximity to the University of NSW and local shops.
A block of eight apartments, the property has a potential income of approximately $412,880, he said.
It also has development approval for a strata subdivision, he said.
The eastern suburbs has seen a flood of apartment blocks come to market this year as investors look to cash in on strong capital gains recorded during the boom, which has allowed many to recalibrate their portfolios.
Ray White Commercial South Sydney agent Michael Khouri said there had been a lot of demand for similar properties in the area.
Demand for eastern suburbs unit blocks has strengthened this year, driven mainly by mum and dad investors and family offices wanting low risk, multi-tenanted assets, Mr Khouri said.
