Sydney, 13 December 2015 – Sydney’s eastern suburbs are emerging as one of the city’s most in-demand investment areas for boarding houses and apartment blocks, with buyers vying to gain a foothold in the sought after market.
Demonstrating this trend, two private local investors have recently snapped up separate boarding houses in Bondi Junction for $2.25 million each.
Tony Braham and Simon Lytton of CBRE’s Metropolitan Investment Properties team negotiated the sale of both 2B Ben Eden Street and 89 Old South Head Road, which were offered to the market separately or in one line.
The sales represent record low yields of 4.2% for Ben Eden Street and 4.6% for Old South Head Road – strong results which Mr Braham linked to increasing local and international investor demand for eastern suburbs opportunities.
“The campaign saw over 108 qualified buyers register their interest in these Bondi Junction properties, with investors attracted to the significant earning potential of the sites,” Mr Braham said.
The 242sqm site at 2B Ben Eden Street offers six self-contained modern studio apartments, each with its own bathroom and kitchenette, whilst the 272sqm Victorian terrace at 89 Old South Head Road offers11 rooms over two levels.
The sites both benefit from R3 Medium Density Residential zoning, providing strong future development potential. The properties offer a prime location within walking distance of Westfield Bondi Junction Shopping Centre, Bondi Junction train and bus station, Eastgate Shopping Centre and an eclectic mix of cafes and restaurants.
The eastern suburbs market is particularly converted by investors and developers, who are recognising the buyer and renter demand for sites in this area, underpinned by the lifestyle offerings of the region.
“We are witnessing an increasing demand for apartment living in suburban markets, particularly in prestigious suburbs such as Bondi Junction where high medium house prices inhibit freestanding home ownership,” Mr Lytton added.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.