CBRE launch $50M apartment block portfolio amid surging demand
In hot demand from investors, one of the hottest asset types in Sydney currently is apartment blocks, according to research from CBRE.
Over the last year the property group has received 26,000 enquiries for apartment block properties, a 48 percent increase on the previous 12 months.
GALLERY
The number of enquiries for these assets is now twenty percent higher than office, development sites or retail investments.
Recognising the demand, CBRE’s dedicated apartment block sales team is preparing to launch a portfolio of six apartment block assets in the next month worth a total of $50 million.
Four of the apartment blocks are in the eastern suburbs, one in Cremorne, and one in Marrickville, and together they total 83 units.
CBRE Director of Metropolitan Investments Nicholas Heaton said, “Apartment block investments offer buyers a far greater yield than the return offered by banks or bonds, with far less risk. The icing on the cake is the ability to strata and sell down or totally redevelop in the future, driving higher returns over the life of the investment.”
Gemma Isgro, Associate Director, Metropolitan Investments said, “Apartment block buyers are looking to purchase an investment vehicle with an initial return of around three to four percent. These investments also provide a land bank for future redevelopment, potentially seeing strong total returns of around 10 percent,” she said.
A block of 27 units in Waverley sold for $20 million, the largest sale of this asset class so far this year, according to realestate.com.au.
The agents reportedly received more than 400 inquiries, held 60 inspections and issued 35 contracts.
In Edgecliff an apartment block sold for $33 million, which remains the highest ever residential sale at auction in Australia.
Images courtesy of realestate.com.au (Photo is of No. 10 Henrietta St, Waverley which sold for $20 million.)
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