The new lock-out laws for bars and clubs around the inner areas of Sydney and demand for residential conversions has led to a string of properties being offered for sale, according to agents.
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The latest is 20-26 Bayswater Road, Potts Point, being four freehold terraces to be sold in one line. The ground floor is currently let to tenants including World Bar, Club Bayswater and Candy's and generate a net rental of about $1.2 million per annum.
Sales agent Tim Grossman, national director for metropolitan investment properties at CBRE and Ari Danas of JLL, are selling the site and said the city fringe areas are hotbeds for residential conversions.
"The demand for apartments in these fringe districts is on an upward trajectory and investors, from high-net worth individuals to overseas buyers, are on the phone daily looking for potential sites," Mr Grossmann said.
"The new lock-out laws are also having an impact on the bars and, as they close, the properties are being bought and converted to residential, where applicable."
One such site was the former Mansions and Hampton Court hotels in Bayswater Road, where the CBRE residential project team has sold more than 150 units in the last two years.
Warren Duncan at LJ Hooker Sydney Commercial, who was handling the sale of the hotel at 2 Roslyn Street, Potts Point – marketed as a potential redevelopment and a completion value of about $26 million – said the demand for these sites was very high.
He said city fringe areas are becoming mini-cities as more people opt to work from home or near their homes, eschewing the commute into the central business districts.
Mr Grossmann also said the Country Women's Association of NSW's office block at 11-13 Greenknowe Avenue, which has 50 hotel rooms, an auditorium and office space, has completed its sale campaign.
"There were 15 expressions of interest for the sites and there will now be a shortlist and second round," he said.
