Apartment owners unite to sell whole unit blocks
The Australian Business Review
By Samantha Hutchinson
More than three full apartment blocks have come to the market in the past month.
A wave of property sales across Sydney sparked by neighbours banding
together to offload their homes in one line has spread to the apartment
sector, with unit owners clubbing together to sell entire buildings for
More than three full apartment blocks have come to the market in the
past month, in sales campaigns driven by surging demand from developers
hunting for existing apartment buildings which they can upgrade for
higher rental returns.
In Marrickville, a family is offloading a building with 46 studio and
one-bedroom apartment owners at 11-13 Osgood Avenue. In Coogee, another
family has come to market with a block of 24 apartments at 326 Arden
Both sales are being handled by CBRE agents, who noted that interest
from apartment owners in in-line sales is increasing, particularly as
more sales reveal they are netting steep premiums selling their units
in one line than they would individually.
“Investors (like them because they) have the ability to create
significant value by transforming all of the units into one-bedroom
apartments to increase the rentals,” said CBRE agent Peter Vines, who
holds the Marrickville listing, adding that he believed strata dealers
who renovated and sold down whole unit blocks could be attracted to the
site, in addition to government agencies and affordable housing groups.
Fellow agent Nick Heaton, who holds the listing in Coogee, said a
string of recent sales had been influential, encouraging more owners to
consider selling in one line.
Twelve owners in an apartment block in Queenscliff near Manly netted
about $850,000 each for ageing two-bedroom apartments when they sold
their building in one line for $10.1m to a developer. In another
campaign, 18 separate owners came together to offload an apartment
block at 30 Clio Street and 50-52 Glencoe Street in Sutherland for
$8.85m after attracting over 150 inquiries.
“The ability to purchase an entire block of units, particularly of this size, is exceptionally rare,” Mr Heaton said.