Fairfield residential block sells for $3.91 million at auction

Fairfield residential block sells for $3.91 million at auction
Staff ReporterDecember 7, 2020

block of 12 residential units in Fairfield has been sold under the hammer for $3,910,000.

The 1,252 square metre property at 30 Railway Parade provides a potential gross income of about $200,408 per annum.

The property was marketed and sold by Ray White Commercial NSW – Western Sydney Associate Director Victor Sheu, Managing Director Peter Vines and Director Joseph Assaf, in conjunction with Stanton Hillier Parker.

Fairfield residential block sells for $3.91 million at auction

Sheu said after a campaign that received more than 85 enquiries, the property sold to a private investor.

“We had interest from Sydney investors, Asian investors, unit traders and local high-net-worth investors from the Fairfield and Cabramatta region, resulting in nine registered bidders on auction day,” he said.

“Developers did enquire on this asset, as it was zoned R4 and capable of being rebuilt into new units, but the investment market at the moment is stronger than development.
“The block had 10 of 12 units occupied at the time of sale and bidding started at $3,000,000. It took more than 30 more bids to climb up to the sale price that was $160,000 over reserve.”

Fairfield residential block sells for $3.91 million at auction

Vines said the Fairfield was similar to Western Sydney in that it attracted a lot of local owners.

“The locals like to stay in their area and a few bidders in attendance were from the region, but what attracted the number of bidders was the investment nature of the property,” he said.

“With the lack of investment opportunities in the market, buyers are eagerly looking for more opportunities where there's an existing income and a flexible exit strategy.

“The market for blocks of units have always performed well amongst private investors due to its low-risk nature.”

Assaf said Fairfield happened to also grasp a lot of Asian attention due to its proximity to Cabramatta.

“It benefits from its close proximity to both Parramatta and Liverpool CBD, which are both booming and looking to increase employment where housing will be required,” he said.

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