An Erskineville five-bedroom residential property has sold for $3 million with approved plans to extend and build an 18-room boarding house on the site.
An Erskineville five-bedroom residential property has sold for $3 million with approved plans to extend and build an 18-room boarding house on the site.
Nick Tuxworth and David Hickey of Savills Metropolitan & Regional Sales brokered the deal, saying the boarding house development in the heritage-protected precinct would be a solid investment opportunity.
“The premium location will deliver the purchaser outstanding and secure cash flows for generations to come providing further funding and lavage for other developments,” Mr Tuxworth said.
A local developer purchased the 449sq m property during a competitive public auction after the campaign received more than 300 enquiries.
“Bidding started at $2.2 million, with five bidders pushing the result above the vendor’s reserve price,” Mr Tuxworth said.
The high demand for accommodation in Erskineville presents an opportunity for this boarding house to be a high-return investment, with an estimated gross income of $400,000 per annum.
“Erskineville is dominated by heritage-protected housing, allowing for this 15-metre-frontage site to be described as an exclusive developmental project,” Mr Hickey said.
The completed project will consist of the three-storey boarding house, including a manager’s flat, common room, laundry and motorcycle parking.
“Boarding houses are in high demand due to the new parking laws, which are causing development applications to slow down and making projects not feasible,” Mr Tuxworth said.