Waverley Council buys Bondi unit block for ‘affordable housing’

Waverley Council has paid $8.55m — $1.4m over the reserve — for a block of six flats ‘in the heart of Sydney’s iconic Bondi Beach’ for affordable housing.

49 Mitchell St, Bondi Beach consists of six two-bedroom flats with no off-street parking.

Waverley Council has paid $8.55m — $1.45m over the reserve — for a block of six flats “in the heart of Sydney’s iconic Bondi Beach” for affordable housing.

The two-bedroom apartments in the 1940s block at 49 Mitchell St, which sold in 2020 for $5.75m, attracted four bidders at Thursday’s auction at the Damien Cooley auction rooms in the city.

Cooley said it was a “great auction” and the sales agents, Paul Grasso of Highland Commercial and Steffan Ippolito of IB Property, who had a guide of $7m, said the local vendor was “very happy”.

The auctioneer and agents were silent on the purchasers, but it was rumoured to be the council which it later confirmed. It’s understood they’d expected to pick it up for $7.5m.

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Four of the six apartments have been renovated by the vendor.

The agents estimate the two-bedders would rent for between $900 and $950 per week on the open market.

The separate sources said it had been the Waverley Council representative who was the most keen, opening the bidding at $6.9m.

The council almost had it at $7.8m, with Cooley about to slam down the gavel in its favour, but another bidder jumped in.

From there it was a two-horse race, pushing the result to $8.55m.

The result means each of the two-bedroom apartments costs $1.45m each, which is still below PropTrack’s $1.52m median apartment price for two-bedroom apartments in the popular suburb.

The guide for the block of six had been $7m, the agents say.

The block is a short walk from the world’s most famous beach.

The Mayor of Waverley, Will Nemesh, was approached for comment on why the council has chosen this site, in one Sydney’s most world-famous suburbs, for affordable housing.

He has sent a press release, describing the council’s purchase as “the most significant expansion of its affordable housing portfolio in over a decade”.

The statement also described it as a “momentous win for the community, gaining additional high-quality housing in a very convenient location, funded from developer contributions through Council’s affordable housing reserve”.

Waverley Council’s Affordable Housing program provides affordable rentals for working people on low-to-moderate incomes, for terms of up to five years.

The scheme usually provides a discount of between 20 and 25 per cent on market rents.

Income limits apply and applicants must be able to demonstrate that they have lived or worked in Waverley for at least three years

Waverley Mayor Will Nemesh says the location is perfect for affordable housing.

Council is currently reviewing its Affordable Housing Tenancy policies to include specific provisions for essential or key workers.

Waverley works with a community housing provider who processes applications and manages the tenancies on Council’s behalf.

The statement said the property at 49 Michell Street property was ideal for affordable housing, being close to the Bondi shopping hub, essential services and transport.

The agent, Paul Grasso, said two-bedroom apartment blocks in this part of Bondi rarely come up for sale.

“They’re very tightly held,” he said.

“We had 200 inquiries, 30 inspections and 18 contracts out on this one.

“The current owner had renovated four of the apartments, installing new kitchens and bathrooms, new floors and given it a lick of paint.”

Grasso estimates the apartments, which don’t have off-street parking, would rent for between $900 and $950 per week on the open market.

He sold another block of six recently, at 122 O’Brien St, Bondi Beach, for circa $8.5m.

Originally published as Waverley Council buys Bondi unit block for ‘affordable housing’