BLOCKS of flats, student accommodation and boarding houses have continued to thrive during the COVID-19 pandemic with Ray White Special Projects (QLD) executing a number of multi-million-dollar deals in the last few months in and around Brisbane.
Recent sales came in Algester, where 1 Wilkiea Place(pictured above) sold for $1 million, with a multi-dwelling asset in Esk also selling for $930,000 as historical interest in the assets continued.
They come off the back of 30 Cotswold Street in Mt Warren Park selling for $2.675 million, Petrie Terrace’s 172-174 Petrie Terrace selling for $1.714 million, Ipswich’s 17 Pring Street selling for $1.65 million, and 85 Stewart Road in Ashgrove selling for $1.2 million.
“This is a niche asset class that’s treated like commercial but is more residential because of its capital growth. We’ve seen huge buyer interest in the price point under $3 million because this is where investors can purchase a secure investment with low-income risk,” said Associate Director Andrew Burke.
“Unlike commercial tenancies, there’s huge tenant depth, and finding replacement tenants can be done with minimal difficulty. When you compare this to the high street where you see a number of ‘for lease’ signs – you can understand the huge appeal of these assets.”
“These residential assets, which are generally owned by private investors, offer the potential for greater capital growth than commercial assets in the same price range,” said Director Matthew Fritzsche.
“In addition to the capital growth over time, there is also a potential upside in each asset through strata titling the individual dwellings, and selling them down individually.”