City Fringe Trends

Posted on 02/11/2011

Tim Green Commercial's City Fringe division finalised the sale if 144-146 Cathedral Street, Woolloomooloo yesterday for $2.45m.
 
Known as the 'Spinners' building the property is situated on a site of two titles totalling 337sqm.  The building, completed in 1996, comprises 1,2 and 3 bedroom apartments, two retail shops and one commercial tenancy. Seven valuable security car spaces are accessed from a rear lane.
 
While we are find that the majority of buyers in the market are owner-occupiers, this particular property was sold to an investor attracted to the diverse income streams, perceived capital growth in the area and quality of build.  With a net yield of around 5.7%, the property offers reversionary rental growth and very easily leased residential components.  In addition there is also a strata plan in place that was approved in 2004 and could be easily reactivated.  

Other significant recent sales in Woolloomooloo include 55-61 Riley Street, a dilapidated, two level warehouse of 730sqm for $2.67m ($3,658/sqm) and 43-45 Riley Street, one level  mechanical workshop of 215sqm, for $1.3m ($6,047/sqm). Both properties were sold vacant possession by long term owners Westfield's.
 
Developments such as the revitalisation of the City Ford building including a new Woolworths supermarket, W Property's development of 114-126 Bourke Street and FKP's Luxe project will only add to the appeal, and capital growth, of this once overlooked City Fringe suburb.

John Romyn, City Fringe Sales & Leasing