An elderly couple who paid a modest $66,000 for a Sunshine North block of 10 units has sold them for a seven-figure sum.
The owners secured the block at 1-3 Isla St in two deals between 1982 and 1985.
On the weekend, the 1205sq m complex featuring two two-bedroom units and eight one-bedroom flats fetched $2.39 million under the hammer.
The deal set a residential price record for Sunshine North, smashing the $1.53 million sale of a luxury four-bedroom house at 211 Duke St from 2018, CoreLogic records show.
The units, which are mostly in original condition, were returning a total of $1940 a week in rent.
“The buyer is a local investor who has sold recently, and who will renovate the units and expects to get higher rental,” Douglas Kay Sunshine agent Adrian Kay said.
The agency also recently sold two unit blocks on nearby Devonshire Rd, Sunshine, for $2 million and $2.09 million, he added.
“Many of the owners of these unit blocks are getting old and selling now and making a great profit from their investments,” Mr Kay said.
The strong price for the Isla St property came after six bidders turned up for the auction in the rain.
“It was a massive result, although the bidding started slowly at $1.8 million,” Mr Kay said.
“Among the bidders was a real estate agent from the city who dropped out at $2.36 million.”
The property was called on the market at $2.2 million, and the eventual buyer placed a knockout bid at $2.37 million.
The retiree vendors, aged in their 80s, were thrilled with the result.
The block is in a residential growth zone close to Northumberland Rd shops, a Victoria University campus, train station and amenities.
It is self-managed with no fixed leases and the rental has not increased for several years.