According to real estate service firm CBRE, the recent sales of two boarding houses in Bondi Junction illustrate the fact that people are looking to gain a foothold in the area.
The two properties, on Ben Eden Street and Old South Head Road in Bondi Junction, both consist of studio apartments and sold for more than $2.2 million.
Tony Braham of CBRE's metropolitan investment properties team said there was strong competition for the blocks, with buyers recognising their earning potential.
“The campaign saw over 108 qualified buyers register their interest in these Bondi Junction properties, with investors attracted to the significant earning potential of the sites,” Braham said.
According to CBRE, the fact that the two sites are covered by R3 Medium Density Residential zoning controls, which gives them future development potential, likely helped the properties reach there sale price as rising house prices in Bondi Junction make apartment living a more attractive option.
“We are witnessing an increasing demand for apartment living in suburban markets, particularly in prestigious suburbs such as Bondi Junction where high medium house prices inhibit freestanding home ownership,” CBRE metropolitan investment properties team member Simon Lytton said.
According to figures from CoreLogic RP Data, the median house price in Bondi Junction sits at $1,625,000, a figure that could rise even further given the predictions that have been made for Sydney’s east in 2016.
Earlier this year Louis Christopher, head of SQM Research, predicted Sydney’s eastern suburbs to lead the way for the city next year, with prices to rise by up to 13%.
