Burwood guest house sells under the hammer for $3.01 million

Another Burwood guest house has been sold under the hammer - though at a substantially lower yield.

Located at 6 Rowley Street in Sydney's inner west, the guest house with 13 rooms and 11 bathrooms fetched $3.01 million.

It is currently returning $128,000 per annum, reflecting a rental yield of 4.25%. 

The 1,730 square metre property offers the possibility to extend and add more rooms or offers the potential for medium density redevelopment, subject to council approval.

Listing agent Sebastian Bonaccorso of Elders Inner West Enfield says there were eight registered bidders on the day and the buyer intends to keep operating the property as a guest house.

It’s the first time the guesthouse has switched hands in over 40 years.

Property Observer reported last month on a 45-room guesthouse in Burwood, which sold for $3.74 million, reflecting a rental yield of 13.9%.

“There’s a shortage of rental properties and a lot of people looking for budget accommodation,” says Joe Vigorito of Raine and Horne Burwood.

The median house price in Burwood is $1.19 million, a 48.8% change in five years, according to RP Data.