Potential changes in negative gearing and capital gains tax has resulted in Sydney apartment blocks emerging as one of the city’s most sought-after investment assets, according to CBRE.

The firm said it has fielded more than 5,000 enquiries for available assets in the past three months, leading to several significant transactions, including the $5,000,000 sale of a block of seven units at 686 Old South Head Road, Rose Bay to a private, high net worth family from Dover Heights.

A block of five units at 70 Blair Street, North Bondi also transacted for $5,750,000 to an offshore family based in Hong Kong.

CBRE Associate Director Gemma Isgro said each campaign had generated more than 300 buyer enquiries.

“We believe the spike in interest for apartment blocks has been spurred by the potential changes in negative gearing and capital gains tax, with buyers looking to invest before any new legislation comes into effect,” she said.

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CBRE Associate Director Gemma Isgro. Source: CBRE

CBRE’s NSW Head of Private Clients, Nick Heaton, said the next test of the market involved 10 Henrietta Street, Waverley - one of the largest unit blocks in Sydney’s Eastern Suburbs.

"Many of the blocks of units we sell have a similar background to ownership,” Mr Heaton said.

“They are traditionally held by families for decades and are passed down through the generations. Investors like these assets because they provide security of cashflow and are easy to maintain for long-term family ownership.” 

The block of 27, two-bedroom units was built in the early 1970’s by the Bergman family and has been held in the same ownership since construction. 

Situated on a significant 2,309sqm parcel of land, the block is being offered for sale via an international Expressions of Interest campaign.“

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