A homeowner has rejected a $1 million offer on a tiny garage in Sydney, and a real estate agent said its value could soar.
The property itself - freshly renovated top-level, two-bedroom apartment in Bondi - is going up for auction next month and boasts a stunning view of the beach, along with two bathrooms, two terraces, electric blinds and air conditioning. It’s guiding for $4.3 million but Raine and Horne Double Bay/Bondi Beach told Yahoo Finance it was contacted by an interested buyer who was prepared to give a million bucks just for the garage.
For context, the entire property - in Ramsgate Ave, North Bondi - was last sold in 2013 for just $780,000. Raine and Horne’s Ric Serrao said the garage alone could be worth $2 million in a few short years.
Have you been given a huge offer for something small? Email me at firstname.lastname@example.org
“What's a million dollars today, in five years, is going to be $2 million,” Serrao said. “It's also interesting that you can actually get a yield out of these things. You could rent that garage for between $250 or $300 a week.”
So, why would the owner reject the offer? Serrao said they felt it was an important feature of the property and breaking it up could diminish its value.
“It was just going to be too complicated to try to break up the title,” he explained, adding: “You'd be amazed how common and how much in demand parking close to the beach is and what someone's prepared to pay.”
Bondi can be a notoriously difficult place to find a park, especially on a hot day. An undercover garage in a nearby street is being rented for $150 a week, or $7,800 a year.
But this type of offer could become more mainstream in the future as places like Bondi gain more residents without having a big expansion on parking availability.
Serrao said property owners would need to have a big think about whether it was worth it to sell the garage or keep it for themselves.
“The smart money would be to sell things as a package because, you know, with development and everything else and with Waverley Council restricting how much parking developers can put in, it's better than superannuation,” he said.
“In my opinion, this sort of an asset will just continue to grow.”
While short of the $1m, there was an ‘extremely valuable’ private parking spot inside the Mantra Hotel that went up for sale for $525,000.