Surprise detail after run down Rhodes house sold by development holdout couple for $8m

After waiting for the perfect buyer, two property owners have sold their house for millions – but their remaining portfolio makes the dizzying price seem like pocket money.

A pair of Sydney property owners have turned a portion of their multimillion-dollar property portfolio into cold, hard cash after they finally sold a tiny red-brick home that developers have yearned after for years for a whopping $8.1m.

Veteran real estate agent Vanessa Kim, who was tasked with selling the Rhodes property, told NewsWire she had never observed a sale quite like this one.

“Before we put the property on the market, I thought maybe only developers would be interested,” Ms Kim said.

16 Walker St sits nestled between a shopping centre and a pair of high-rise developments. Picture: NewsWire / Nikki Short

“After I did some advertising, we had people from all different kinds of backgrounds messaging about the house.”

Ms Kim said aged care companies, fitness centres, childcare groups and even a church group were interested in the plot of land, which sits nestled in between three skyscrapers “because of the location”.

While Ms Kim was unable to provide the name of the buyers, it has been reported by other outlets that a hotel is slated to be constructed on the site after the home is demolished.

Walker street was a very different place in July 2013. Number 16 is pictured on the right. Picture: Google

It is understood the developers who constructed Rhodes Central, the large shopping centre that looms over the left-hand side of the minuscule property, made an offer to the owners, Yuen Yee Lai and John Kwong Lee, when the centre was still a construction project in the mid-2010s.

The owners told developers they could have the property for $20m and, understandably, the developers declined the offer.

As more large developments began to pop up around the property, it began to accumulate in value, eventually garnering a large amount of interest from several prospective buyers by the time it re-entered the market in early 2025.

When the auction was held on Saturday, around 170 people attended to see how much the place would eventually go for, and which of the eight bidders would seal the deal.

The construction of Rhodes Central was well underway in December 2018, but the house at Number 16 held its ground. Picture: Google

The house was auctioned off with an $8.1 million price-tag to a “hotel business” according to Ms Kim, but data shows the home to be a mere fraction of the value of Mr Lee and Ms Lai’s property portfolio.

According to RP Data, the pair own five properties across the inner-west and the City of Sydney, not including the recently-sold Rhodes house.

Two apartments in Rhodes, a manor house in Strathfield, a high-rise apartment in Haymarket and a waterfront apartment in Barangaroo make up the enviable portfolio, which according to value estimates from CoreLogic and realEstimate, could have a combined worth of up to $14.25 million.

All of the properties owned by the pair were purchased between 2009 and 2014, and have been steadily accumulating value over the last decade.

The Strathfield home was one of the earliest purchases made by the former owners of the Rhodes house, and estimates suggest its value has tripled since it was bought for $2.7 million in December 2009.

The Strathfield mini-mansion boasts a two-vehicle garage and multiple balconies. Picture: Realestate.com.au

The decadent red-brick mini-mansion sports a two-car garage, well-trimmed hedges, a pool in the backyard and a large open-plan kitchen, dining and living area which backs onto the rear end of the property.

The second feather in the pair’s expensive cap is the Barangaroo property – a waterfront-facing apartment which peers over the Wharf’s famous Wulugul Walk.

Purchased for $940,000 in 2014, the luxury apartment is now estimated to be worth almost $2 million.

The backyard features a pool, plenty of lawn space and even a small gazebo. Picture: Realestate.com.au

A post which reported the sale of 16 Walker Street on r/AusPropertyChat went viral earlier in the week, with over 115 commenters weighing in on the once-in-a-lifetime purchase.

“The seller is so lucky. They’ll be set for life,” said one user.

“I knew this one had development potential, but I’d estimated about 4 mil,” said another.

“It’s a smallish block and very heavily overshadowed. i thought the ability to get a good return from apartments there would be limited.”

Both Ms Lai and Mr Lee were reached out to for comment, but have not responded.

Originally published as Surprise detail after run down Rhodes house sold by development holdout couple for $8m