Real Estate

Kurraba Point neighbours set for windfall

Written by The ReReport
As seen in the Source link, written by on 2018-12-12 01:21:33

Twelve neighbours will aim for a huge payday when they sell their entire Kurraba Point apartment block.

The amalgamated 1043 sqm site at 2B Wallaringa Ave with Harbour views has R4 High-Density Residential zoning, making it a prime spot for developers.

Areas with R4 zoning are permitted by North Sydney Council to have high density apartment blocks up to 12m high — which equates to roughly four storeys.

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It is also directly behind 85 Kurraba Rd, where eight neighbours there netted $23.5 million in September.

CBRE’s Toby Silk said the owners, who are actually shareholders in the company title site, are capitalising on the lower north shore’s development boom.

“With the buyers in high-end luxury apartment sector generally not reliant on financing, developers are going down this route more and focusing on areas like the lower north shore as they are proven markets and popular with downsizers,” he said.

Based on feedback from more than 350 inquiries, Mr Silk expects the site to fetch “in the mid teens”. Each owner could make $1.25 million if the block went for $15 million.

This is significantly more than the most recent sale in August, where a two-bedroom apartment in the building sold for $789,000, according to CoreLogic.

Currently three storeys, Mr Silk said a future development on the site would most likely be four levels.

“This would allow the site to take in even more amazing views of North Sydney, the city and Sydney Harbour,” he said.

With expressions of interest closing this week, there has been more than 350 inquires, made up mostly of local developers and some international developers who are teaming up with Australian-based companies.

Mr Silk said he did not expect the developer who snapped up 85 Kurraba Rd to make a punt on this site to create a massive development site.

“He hasn’t really been engaged in this one, as I believe they are pretty advanced in getting their DA approved,” he said.

CBRE expects that a sale of the building will happen sometime before Christmas.