A unit block on Victoria Rd in Punchbowl was destroyed by fire in 2024 and has been sitting under a large blue tarpaulin.
From ashes to asset: A long-standing eyesore in Punchbowl has changed hands in an off-market sale to a developer who will refurbish the property for rental income.
For more than a year, the block of units at 164–166 Victoria Road, which was destroyed by fire in 2024, has stood silent under a large blue tarpaulin that has become a daily reminder of the fire for locals.
On Tuesday it was sold off-market to a local developer for $2.9 million with plans to restore it to its former glory.
Lead agent Fadi Hajjar, director of Class Realty Bankstown, said local feedback was that neighbors are relieved and excited to finally see movement on the site.
MORE: Iconic Sydney pub is getting a major renovation
The apartment building fire in August 2024. Source: Fire and Rescue NSW online
The fire was reported to be accidental. Source: Fire and Rescue NSW online
“It was a difficult sight for the community,” Mr Hajjar said.
“To know that the blue tarp is finally gone and that a developer is ready to bring the building back to life – it’s a great sign of confidence for Punchbowl.”
Mr Hajjar said the investigation showed the fire was caused by a former tenant misusing an electrical socket. The fire passed through the upper left unit and spread through the roof of the building, damaging other properties.
The property, which currently has no roof, was completely gutted, including everything from kitchens, bathrooms and the ground floor.
“It’s been stripped to the bare bones,” Mr. Hajjar said.
“The fire brigade put up the temporary blue tarpaulin, but it was an eyesore for local residents. When we did inspections there, they were so relieved that something was finally happening to that building.”
MORE: Aussie House comes with 80 cars
Inside the Victoria Rd building, which has been stripped to a shell
A blue tarp has replaced the roof.
Mr Hajjar said the engineer’s reports following the fire showed the building could be salvaged and still retain its structural integrity thanks to its solid double-brick construction.
“They don’t build them like they used to,” he said.
“I think that’s the appeal of the old red brick buildings, that they’re built to last.”
It was a previous sale in the suburb that prompted the owners to contact the agency. Mr Hajjar sold a block of units in the suburb for $3.8 million at 13 Rosemont Street North earlier this year.
Mr Hajjar said when the owners of Victoria Rd contacted them, they had a number of developers and investors who they thought would be interested, which led to the off-market campaign and a local developer taking up the opportunity after seeing the value of the restoration.
The blue tarp boldly remains in the suburb as a reminder of the fire
“Their plan is to most likely keep it as a long-term investment, after it has been restored and improved to its former glory,” Hajjar said.
“They have done several other local developments.
“They want to hold on to it and keep it as a little cash cow for them.”
The home consists of four downstairs and four upstairs units with identical floor plans that are mirrored and flipped.
According to Mr Hajjar, the buyers’ plans include a complete renovation and once completed, the eight apartments will be offered to the market as rentals.
“They are well-proportioned two-bedroom units, they are quite large inside and it has a very nice layout, so I think the finished product will look quite nice,” he said.
The buyer plans to restore the unit block for rental.
Mr Hajjar added that Punchbowl continues to see an upturn, with the Sydney Metro due to be completed in 2026 and other local developments driving the strong rental market.
“We find that people who are keen to buy these buildings are quite wealthy investors and they like the fact that they are on one title, you don’t have to stratify it and have all those overheads,” he said.
“For something like this, we’re looking at a rental income of about $280,000 a year for the end product.”
MORE: ‘Kick everyone out’: Pub magnate reveals secret behind empire
#Burnt #Punchbowl #unit #block #redeveloped #cash #cow #major #sale #realestate.com.au