A whole block of flats in Kew has sold 3 weeks prior to auction on a 14 day settlement. The sale represents a sharp 2.6% fully let yield and was sold to a Sydney based accountant.
21 Gladstone Street, Kew, which comprised of 8 x two-bedroom flats, was secured by the interstate group who were seeking exposure to the buoyant Melbourne commercial market. The buyer was a referral from Stonebridge’s Sydney office.
“We have sold 3 properties to Sydney buyers this month, highlighting the importance of a national reach when selling properties in Melbourne’s city fringe” noted Mr Kilner.
“It helps having genuine relationships with our NSW counterparts, their Sydney buyers still see a lot of value in the Melbourne market” said Mr Kilner.
The property was built in the 1960s and has been lightly refurbished over time. The traditional tightly held asset class has seen a spike in activity recently as a result of the recent changes to the residential tenancy act.
“There is strong demand for blocks of flats because they offer a diversified income and the potential to value add via refurbishment or individual sell down” said Mr Kilner.
“This sale is almost 100bps sharper than the last sales of blocks of flats and highlights the resurgence of confidence over the past 6 months” commented Mr Zhang.
|Recent Blocks of Flats Sales|
|Property Address||Yield||Building Rate|
|21 Gladstone Street, Kew||2.6%||$4,500,000|
|37 Hope Street, South Yarra||3.2%||$6,639,000|
|35 McArthur Street, Malvern||3.3%||$3,475,000|
|37 Paxton Street, Malvern East||3.4%||$3,015,000|
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