Demand cranks up for older-style apartment blocks after Mascot Towers and Opal Tower disasters
Demand is cranking up for ‘good old-fashioned’ flats with 21 bidders registering for a Randwick unit that sold for $290,000 above reserve on Saturday.
The two-bedder at 2/73 Pine St was no palace but The Agency’s Thomas Heath said buyers recognised the 1960s block of six had “good bones” and it fetched $1.16 million.
“It went crazy,” Mr Heath said.
“It was a good old-fashioned 1960s concrete double-brick solid building.”
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Nicholas Wise of McGrath Coogee rang the Southern Courier reporting the same trend.
“The fear of the unknown is pretty strong so that’s why 1960s and Art Deco flats are getting so much attention,” he said.
“It’s driving up prices for these types of buildings and creating stronger activity and inquiry around them.
“Reports about Mascot Towers and the Opal Tower at Homebush are making first home buyers in particular nervous because buying your first property is such a big thing.”
In Randwick, Mr Heath said out of the 21 that registered, six actively bid. “Two really pushed it up from $1 million to $1.16 million,” he said.
Some of the buyers on Saturday even mentioned the Mascot Towers and Opal Tower disasters, where residents were evacuated because of fears about dangerous cracks.
“They were actually saying ‘They don’t build them like this any more,” Mr Heath said.
The property attracted a mix of owner-occupiers wanting to renovate and investors, with the successful purchaser an investor.
Meanwhile in Coogee, Blake Davis and his wife, Genna, are happy clients of Mr Wise.
He sold their older-style two-bedroom, two-bathroom apartment at 16/257 Carrington Rd, prior to auction for $1.2 million.
The guide had been $950,000.
“We had a fair bit of interest and there were offers just below $1.1 million,” Mr Davis said.
“But then this young guy offered $1.2 million, which were happy to accept.”
The couple are upgrading to a house in Mascot that they’ve purchased for $1.33 million, with plans to start a family.
“That’s the next step,” Mr Davis said.