THE foundations of the Aqua apartment block in Bondi Junction may have just been laid, but already top prices are being offered for units in the development with early investors set to collect a windfall.
A two-bedroom and study apartment bought for around $1.3 million off the plan in May last year has just been listed for more than $1.5 million.
With a 10 per cent deposit required for off-the-plan sales, the current buyer would have put down a deposit of around $130,000. Selling for just $1.5 million would yield a return of $200,000 in a year.
Or after the $130,000 deposit is returned, there is $70,000 in clear profit (before additional taxes).
Listing agent of 1302/241 -245 Oxford St, Kevin Fine, of Next Real Estate Elizabeth Bay, said it was one of just three apartments that he had listed for Aqua apartments, which is due for completion in mid-2016.
He also has a two-bedroom apartment with a price guide of more than $1.45 million. Two bedroom apartments were listed as selling from $910,000 for the off-the-plan sale.
There is also a one-bedder listed with a price guide of more than $800,000. One-bedroom apartments initially sold from $580,000.
The 129 apartments in the 20-level block in Oxford St sold out in a day when they hit the market a year ago. Mr Fine said there was already strong interest for the two-bedroom and study apartment, which was originally bought by a local investor.
“This is a particularly good location and there isn’t that much else like it in the area,” Mr Fine said.
He said there continued to be a strong demand for good quality developments in prime locations.
Mr Fine said, for example, similar one-bedders selling off the plan in Milsons Point were fetching in the $700,000 to $800,000 range.
He said smart investors looked to sell off-the-plan apartments before completion, a time when a number of properties in the same building could be on the market.
He said he dealt with a number of investors who bought properties with the express interest of selling them before completion.
The Aqua apartments are one of just three large residential blocks under construction in Bondi Junction. The 20-level Capitol apartments at 253 Oxford St and Vue, a development of 111 apartments that sold out in two hours last March, are within footsteps of the Aqua apartments in Oxford St.
The median apartment price in Bondi Junction has risen in price by 13.8 per cent over the last 12 months according to CoreLogic RP Data. (Source: http://www.dailytelegraph.com.au/newslocal/city-east/investor-set-for-70000-profit-after-selling-bondi-unit-while-building-is-still-a-hole-in-the-ground/news-story/24f1935e0761cd08bf3aaccb17448772)