A corner building in Coogee, which has been the home of the Commonwealth Bank of Australia (CBA) for 36 years, has proven to be a lucrative investment, fetching over $11 million when the property changed hands and potentially giving the new owner over $400K in rental income per year.
The 585 square meter property is a two-storey structure on 199 Coogee Bay Road, a very prominent site on the suburb’s retail strip and some 250 meters of the beach. The new owner, a Coogee businessman who runs a gym near the bank’s location, had outbid 15 other potential buyers, pushing the sale past its reserve price by $2.5 million.
Following the sale, CBA has also signed another three-year lease on the Coogee building, securing the new owner’s investments. The property is situated on B2 Local Centre zoning with a 12 meter heigh limit, opening possibilities for developments in the future.
It’s mostly local investors who have been keen on buying commercial properties in the eastern suburbs beaches than investors abroad since the pandemic. These local investors are more familiar with the properties’ value thus they are willing to pay a premium.
Due to its proximity to the beach, the Coogee lifestyle is all about a work/life balance with several locals embracing fitness and health, with the occasional fish and chip indulgence. Commercial activities and traffic usually peak during the summer months as people flock to Coogee’s beautiful beaches.
In Coogee, apartments are more in demand than traditional houses so there are more new buildings than old but renovated homes. However, these apartments boast of some of the best views of the beachside that appeals to many investors as well.
