Unit blocks continue to be in favour with investors, with another two Sydney unit blocks selling in deals negotiated by Knight Frank, bringing the total sales for this property type to nearly $33.6 million for a total of five sales over the past two months.

A near-new block of 10 apartments on a 400sqm block at 1 Sparkes Lane in Camperdown has sold for $7.4 million, purchased by a private offshore high-net-worth purchaser from Belcorp, with a short settlement in place.

The fully-leased asset, which comprises a mix of one and two-bedroom units with balconies and above ground parking, was sold following an Expressions of Interest (EOI) campaign run by Knight Frank agents Demi Carigliano, Anthony Pirrottina and Adam Droubi.

Mr Carigliano said the campaign again demonstrated the ongoing strong buyer demand for unit blocks, with the sales campaign for the Camperdown property yielding 134 enquiries and 24 inspections.

“We had interest from both local and offshore capital, resulting in six offers and the property being sold within 24 hours of the EOI campaign closing,” he said.

“The property is fully leased, but also offers opportunity for significant rental uplift over the coming months to increase the return, which was attractive to buyers.

“The expected potential gross rental income is more than $392,000, which is $20,000 more than the current income.

“The asset’s location in a prime inner Sydney location, short walk to Sydney University and Royal Prince Alfred Hospital, was also a drawcard for investors.”

A four-level block of 16 strata-titled apartments on a 1,277sq m site at 5-7 Windsor Road in Merrylands with on-grade parking has also sold in one line for $7.5 million, following an EOI campaign run by Knight Frank agents Adam Droubi and Jessen O’Sullivan in conjunction with Ray Fayad of Laing & Simmons in Parramatta.

The property, which is less than five years old, generated 45 enquiries and three offers. 

“Situated at the heart of Central Western Sydney, surrounded by rich local amenity, this asset presented a compelling and secure investment opportunity,” said Mr Droubi.

“It is adjacent to major employment centres in the midst of Metropolitan Sydney’s infrastructure boom, attracting high quality tenants, and has a secure stable cash flow with significant rental upside, appealing to landlords.”

The property has a current passing income of current passing income of $457,000, but a potential rental income of more than $484,000.

The sales follow three other recent sales of Sydney unit blocks including:

An art deco block of four units at 88 Francis Street in Bondi Beach, known as ‘The Pines’, selling for $6.9 million, equating to $1.725m per unit, prior to the close of an EOI campaign. It was purchased by an international investor from the Hersch Family in a deal negotiated by James Masselos, Adam Droubi and Demi Carigliano of Knight Frank. The property, which attracted more than 175 enquiries, sold on a 2.85% gross yield with the current income of $197,600. However, the total market gross income is estimated at 270,400 per annum, with potential for rental reversion.

An apartment block and two townhomes on 699.3sq m at 313 Bronte Road in Waverley recently sold in one line for $9.25 million in a deal negotiated by Knight Frank agents Demi Carigliano and James Masselos in conjunction with Clint Ballard of Sotheby’s International. The property was met with strong demand during the EOI campaign, with 140 enquiries and six offers. It had an estimated total income of more than $340,000 per year as holding income and future development potential. 

A block of 4 apartments at 40 Victoria Street in Penshurst was sold for $2.55 million by the Coenig family to a private investor in a deal negotiated by Knight Frank’s Adam Droubi. It was sold prior to a scheduled auction for a record low 3.5% gross yield, with 64 enquiries and three groups competing to exchange contracts for the property on the day. The property has excellent holding income, with a potential total rental of $98,800 per year, with future upside due to the zoning.

Knight Frank’s Anthony Pirrottina said unit blocks were continually proving to be a highly sought after asset type, evidenced by the strong sales results over the past few months.

“There is strong income on offer for unit blocks, with many of these recently-sold properties having the potential for rental uplift to bring them up to the market,” he said.

“The replacement value of these properties also continues to rise due to inflation and increasing construction costs.

“We anticipate purchaser demand for apartment blocks will remain strong, with investors actively seeking apartment blocks from throughout metropolitan Sydney, capitalising on strong rental growth and providing capital protection against inflation.”

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