Paddington apartment block set to test investor appetite amid Eastern Suburbs surge

A tightly held Paddington apartment block is set to go under the hammer next month, as investor demand for income-producing residential assets across Sydney’s eastern suburbs continues to build momentum. 

Located at 160 Flinders Street, the mixed-use holding comprises nine apartments, including three two-bedroom and six one-bedroom units, alongside two ground-floor retail tenancies, dual lock-up garages and telecommunications leases. The asset generates a gross annual income of approximately $420,000. 

The property will be offered via public auction through Cushman & Wakefield’s Matt Pontey, Miron Solomons and Henry Robertson on Tuesday, 2 June at Cooley Auction Rooms in Double Bay, with price expectations in the high $9 million range. 

The campaign comes amid a sustained uptick in buyer demand for quality apartment blocks in well-connected, lifestyle-driven precincts, with investors increasingly gravitating towards assets that offer both secure income and future rental upside. 

Cushman & Wakefield has transacted approximately $34 million worth of residential apartment blocks over the past quarter, with a further $30 million in similar stock currently being brought to market, reflecting growing depth and confidence in the sector. 

Matt Pontey said the Paddington asset was expected to resonate with a broad buyer pool given its diversified income profile and blue-chip location. 
“The combination of residential, retail and telco income streams provides a level of security that is highly sought after in the current market. Savvy investors will also explore the opportunity for refurbishment and strata titling in the future. The competitive pricing expectations should drive strong engagement through the auction process,” he said. 
Miron Solomons said the campaign aligned with a broader flight to quality, particularly across Sydney’s eastern suburbs. 
“We’re seeing a clear shift towards well-located, character apartment blocks where investors can rely on both underlying land value and consistent tenant demand. Our recent transaction volumes highlight the depth of capital targeting this segment”. 
Henry Robertson added that assets offering immediate income with identifiable rental reversion were proving especially compelling. 
“Buyers are prioritising assets that deliver day-one cash flow, but also present clear opportunities to enhance income over time. That balance of stability and growth is what’s driving competition for opportunities like this in Paddington,” he said.