Guesthouse in Sydney's North Shore sells for $1.82 million

A Greenwich guesthouse in Sydney’s lower North Shore has sold at a yield of about 5 percent, underpinning the demand for boarding houses.

The 12-room Shore Inn Guesthouse at 314a Pacific Highway was purchased by a private Sydney-based investor for $1.82 million. 

Located on a 411 sqm landholding, the Shore Inn Guesthouse provides short, medium and long-term stay options over two levels, with four of the rooms including ensuites. 

There is also development potential, with a draft scheme in place to add an additional level with a further four rooms and balcony. If materialised, it is expected to boost the income by up to 50 percent. 

The property, which had been previously listed with four agents for four months, was sold by CBRE’s Toby Silk within four days.

“Investors are drawn to boarding houses due to the flexibility and control they offer on investment. By running the operation’s side, they have control over the property and can maximise the income generated," Silk said. 

The Shore Inn Guesthouse is close to the St Leonards train station, and offers signage exposure to six lanes of traffic on Pacific Highway.