Investors snap up 12 of the 14 Kensington in the Park, Southport Gold Coast mortgagee offerings - and some sight unseen
Investors snapped up 12 of the 14 Southport apartments listed as ‘mortgagee in possession’ at auction on the weekend.
The selling prices of the one-bedroom apartments ranged from $170,000 to $194,000 which was for one of two unit offerings with a study.
The selling prices of the two-bedroom apartments began at $225,000 and peaked at $245,000.
Two of the 14 - making the 100% clearance rate - were bought by first home buyers.
The 14 apartments in the 75 unit Kensington on the Park complex were sold through Jackson Paradise at Ray White Prestige real estate.
The median unit price for Southport sits at $300,000, a 9.2% drop from last year, according to RP Data.
In total, there were about 30 registered bidders seeking the 14 apartments, some of which came with car spaces.
The gross yield based on estimated rentals of $340 per week sit around 7.2% to 7.85%.
Jackson Paradise said the investors were attracted because of the apartments’ location and the “good value” of the properties.
Sydney steel fabrication business owner Bruce Carson bought two of the units unseen.
Bruce Carson, whose acquistions included a two bedroom for $243,000, told News Ltd papers he was attracted to the coast for its "good buying".
"My son recently bought property in Surfers Paradise and I thought the prices were fairly cheap," Mr Carson said.
"I started researching and came to the conclusion that the Gold Coast was at rock bottom. So I flew up Friday. I've bought them unseen my wife is going to spin out!"
Mr Carson said his research had led him to believe Southport along the new light rail path and with the new 750 bed $1.76 billion University Hospital would be a good investment.
"When I crunched the numbers I thought they gave a good return. It's a different buying environment to Sydney."
While there were multiple bidders on each property, the two-bedroom units were more popular, the selling agent Jackson Paradise told Property Observer.
“[They are] easier for renting down the track…you can rent them out for a higher return”.
The expected rent for the apartments is about $340 for a two-bedroom and $300 for the one bedrooms.
A two bedroom unit in the same complex is currently rented at $340 per week.
“It was a great result for the Gold Coast property market in 2013.”
“There’s a lot more confidence out there. It’s a good start to the year.”
The one- and two-bedroom Southport apartments, held by the same owner, were last sold in 2006 in one line for $3.46 million, Property Observer reported last week. The units were financed by Provident Capital.
The apartments are estimated to have recouped around $2.9 million in total.
One of the one bedroom apartments measured 74 square metres square, and a two bedroom apartment was 82 square metres.
Other recent sales in the block of 75 include a ground-floor one-bedroom unit in the same complex that sold for $160,000 last year – and at $244,000 in 207 and at $230,000 in 2003. There was also the sale of a two-bedroom that sold for $305,000, having last sold $290,000 in 2003.
A one-bedroom unit was recently listed with $199,000 hopes, though it appeared not to sell before being withdrawn from sale. It had traded at $265,000 in 2007 and been rented at $295 a week in 2010.
A two-bedroom apartment, which rents at about $340 a week, has been listed at $275,000.
The average Southport apartment is on the market for more than four months before finding a buyer, according to RP Data.
The median sale price of units in Southport has dropped 10.3% in the last year and is now $305,000.
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