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Bondi Apartments Hit the Block with $40m Price Tag

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The shadow of the coronavirus might be clouding global economic forecasts but the residential market outlook remains sunny in Bondi, where a beachside apartment building will go under the hammer with price expectations of up to $40 million.

In a sign of the emergence of the build-to-rent sector, the recently-built block of 17 units at 1a Lamrock Avenue, Bondi, was built and retained by a private family for several years and will be offered to the market in one line.

The block will be offered fully leased with a net income of approximately $900,000 per annum from a mix of one, two, and three-bedroom penthouse style apartments.

Colliers International’s Miron Solomons along with IB Property’s Steffan Ippolito are advising on the first-time listing and said the asset was attracting interest from both institutional buyers and investors alike.

“2020 has already seen our property market benefit from an influx of capital traditionally reserved for alternate investment vehicles such as the stock market,” Solomons said.

“Australian and global investors are looking for stable, defensive assets underpinned by substantial capital growth.”

IB Property’s Ippolito confirmed price expectations of "circa $40 million" for the rare beachside offering, which he said ticks the right boxes for a diverse range of investors.

“Assets like this are beyond rare…and appear to be supported by funds, financial institutions and valuers all seeking these attributes,” Ippolito said.

Auctioneer Damien Cooley, of Cooley’s Auctions, who will auction the property on 7 April, said the transaction was expected to garner interest from across the globe.

“I have no doubt this opportunity will attract global interest plus see all the key local buyers who know this market better than anyone bidding for the chance to own this piece of Bondi Beach.”

“These candidates will be looking to capitalise on these fundamentals plus the hassle-free growth with multiple income streams,” Cooley said.

The listing comes as both dwelling prices and rental growth in Sydney continue to defy trends elsewhere in the markets, and taps into Sydney’s predicted undersupply of luxury apartment product.

These conditions are in turn offering opportunities for developers, with a listing of a nearby Bondi site with approval for 10 "super luxury" apartments at 134-138 Campbell Parade set to go under the hammer in March, with a price tag of around $20 million.

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Article originally posted at: https://theurbandeveloper.com/articles/bondi-apartment-auction-40m-price-guide