- The 21-bedroom Backpackers HQ sold for circa $10M
- Raine & Horne Potts Point/Elizabeth Bay Director says its important to build 'robust relationships'
- Optimistic about apartment sales in the Inner East
Having recently sold the iconic Potts Point Backpackers HQ for around $10 million, Jane Schumann, Director of Raine & Horne Potts Point/Elizabeth Bay, said the sale reflected demand for unique properties in Sydney’s affluent Inner East.
The Backpackers HQ at 172-174 Victoria Street, Potts Point, consisted of two four-storey terraces with 21 bedrooms, 15 bathrooms and a sandstone basement.
“The buyer will probably turn it back into a residential concern, which will be fantastic, fantastic for the area…the buyer does some building work and realised the opportunity this unique property presented,” said Ms Schumann.
Ms Schumann’s secrets
First and foremost, Ms Schumman believes building robust relationships with vendors and buyers in the Inner East over the past 30 years has been responsible for success. She says this is true especially given most of her listings come from both repeat and referral business.
“Buyers have to enjoy how they’ve been treated, and this is why they come back as vendors,” she said.
“In relation to a sales transition, what has changed over the last few years is client management, which means being able to relate very quickly to your buyer. This approach has helped Sam (a fellow director) and myself produce major sales such as the Potts Point Backpackers transaction, as we always aim to make buyers comfortable.”
She adds that while, of course, her job is to get the highest price for vendors, all business dealings should nevertheless be pleasant.
“What I am doing differently is undoubtedly having the strength to ask for more, and a lot of agents settle for less than they should.
“Also, we can usually spot our buyer, and once we know they’re there, then it’s all just a matter of how the deal is put together. Many people don’t even recognise when they have their buyer, so this is another factor that helps us win major listings and achieve record sales.”
Outlook for Sydney’s Inner East
Ms Schumann says as seen nationally, there is a lack of quality stock for sale. However, interestingly, she added apartment buyers are returning to the scene.
“While there is a market for the prominent, unique properties like the Backpackers, demand for apartments is starting to pick up some pace,” she said.
“Last year, it was hard work to sell any apartments. However, this year apartments are back on people’s radar.
“Today, there are a lot more upmarket, fabulous buildings with big apartments in this area than when I started 30 years ago. And these are the ones that mostly the downsizers choose to buy. They are primarily people from the North Shore or downsizers from the east.