Neutral Bay unit owners sell development site for more than $20 million
Eight unit owners in Sydney’s lower north shore have raked in more than $20 million after banding together to sell their building to developers.
It is understood the actual figure could be closer to $24 million, with unit owners pocketing an average of about $3 million a property, according to a statement from selling agency Colliers International.
All unit owners at 85 Kurraba Road, Neutral Bay, were on board with selling the two-bedroom properties in one line to form a 1454-square-metre site. One of the owners has owned the home for nearly 30 years, paying $325,000 in 1990, Domain Group records show.
Unit owners have made about $3 million each from their properties. Photo: Supplied
The most recent sale happened in early 2015 – as the property boom was escalating – for $1 million, representing a considerable profit in a relatively short period of time.
The top-level unit was most recently advertised for rent for $790 a week last June.
Selling agents Guillaume Volz and Joseph George, from Colliers, received 12 offers for the site – all above $20 million and all from developers.
The final buyer was a local firm Avance Property, which plans to build a high-end boutique apartment block on the site.
“They’re very bullish on that north shore market,” said Mr Volz, who estimated that the end value of each apartment would be “well over $3 million”.
The site is zoned R4 for high-density residential use and has a 12-metre, or about four-storey, height limit.
Views of the Sydney Harbour Bridge can be seen from the top-level unit, which explains the rents. Photo: Domain
While domestic developers dominated the pool of serious buyers, Mr Volz said there were several Chinese groups competing on the property.
“We had Chinese and local (buyers), so for all the talk about Chinese buyers leaving the market, there are strong astute buyers that are still there and the local guys recognise that there’s an opportunity also.”
“There’s definitely been a pullback but that (site sale) shows there’s still good demand for the right sites.”
Mr Volz said that many Chinese developers had “become local developers anyway”.
“They’ve been here about five years and they’re establishing themselves here,” he said.
“It doesn’t matter where their money comes from, as long as they’ve got money. The buyers that are looking, they’ve got funds available locally; they’re not relying on offshore funds to buy.”
There was still strength in the upper end of the lower north shore market, thanks to a lack of supply of properties which were in demand from empty-nesters, he said.
“North shore is still under supplied for new development opportunities so that’s why we were able to get a good result,” Mr Volz said.
Mr George said the site was “tailored for an owner occupier-focused development”.
