Brunswick cheapie sells for $260,000 reflecting 5.1% yield

A one-bedroom apartment in Brunswick was Melbourne’s most affordable auction sale over the weekend, according to Australian Property Monitors (APM). 

Located at 5/1 Sydney Road, it sold for $260,000 through Barry Plant Brunswick.

Listing agent Jim Dandris told Property Observer the auction went "very well", with three registered bidders present. 

The successful bidder was an investor. 

Dandris also revealed that the reserve price was $250,000. 

He added that the property market in Brunswick is "very hot" at the moment, with great buyer activity from investors, owner-occupiers, as well as first-time home buyers. 

"With the low interest rates, owning a home has become more affordable. Buyers have ceased renting and are looking at borrowing money to buy their first home. Investors have taken money out of shares, and looking to put it back into brick and mortar. Vendors are also starting to get prices they are happy with," he said.

Prior to this sale, the apartment last sold in 2001 for $167,000. It was also sold in 1997 for $105,000, according to RP Data records. 

The apartment is currently leased at $255 per week, reflecting a yield of 5.1%. 

It was also listed for rent in 2009 at an asking price of $230 per week, and from 2007-2008 at an asking price of $210 per week, according to RP Data records.

According to the latest RP Data report, the median sale price for units in Brunswick is $397,500, down 5.4% on last year. The average discount required to sell a unit is 6.6%, while private treaty sales average 95 days on market.

The median asking rent for units is $365 per week, while gross rental yield currently stands at 4.8%.