Waverley Council has purchased a block of six flats in Bondi Beach for $8.55 million to expand its affordable housing program, paying $1.45 million over the reserve price at a competitive auction last month.
The 1940s apartment block at 49 Mitchell Street, located within walking distance of Bondi Beach, consists of six two-bedroom apartments without off-street parking. The property last changed hands in 2020 for $5.75 million, representing a nearly 49% increase in value over five years.
Thursday’s auction at the Damien Cooley auction rooms saw four bidders compete for the property, which had been listed with a guide price of $7 million. Sources present at the auction reported that the Council representative opened bidding at $6.9 million and nearly secured the property at $7.8 million before another bidder intervened, resulting in a two-way contest that pushed the final price to $8.55 million.
The purchase price equates to approximately $1.45 million per apartment, which remains below PropTrack’s median price of $1.52 million for two-bedroom apartments in Bondi.
Waverley Mayor Will Nemesh described the acquisition as “the most significant expansion of its affordable housing portfolio in over a decade” and “a momentous win for the community.” The Council confirmed the purchase was funded through developer contributions via its affordable housing reserve.
The Waverley Council Affordable Housing program provides discounted rentals to qualifying working people on low-to-moderate incomes, typically offering 20-25% below market rates for terms up to five years. Eligibility requires applicants to demonstrate they have lived or worked in Waverley for at least three years, with the Council currently reviewing its policies to include specific provisions for essential workers.
Paul Grasso of Highland Commercial, who handled the sale alongside Steffan Ippolito of IB Property, noted that two-bedroom apartment blocks in this part of Bondi rarely come to market.
“They’re very tightly held,” Grasso said. “We had 200 inquiries, 30 inspections and 18 contracts out on this one.”
Four of the six apartments have been renovated by the previous owner, featuring new kitchens, bathrooms, floors, and fresh paint. Despite lacking off-street parking, the units would command between $900 and $950 per week on the open rental market, according to agent estimates.
The Council stated the Mitchell Street property was “ideal for affordable housing” due to its proximity to Bondi shopping, essential services, and public transportation.
Published 28-March-2025