Burnt Punchbowl unit block to be redeveloped into ‘cash cow’ after big sale

A unit block on Victoria Rd in Punchbowl was destroyed by fire in 2024 and has sat idle under a large blue tarp.

From ashes to asset, a longstanding eyesore in Punchbowl has changed hands with an off-market sale to a developer set to refurbish the property for rental return.

For more than a year, the block of units at 164–166 Victoria Road, destroyed by fire in 2024, has sat idle under a large blue tarp that has become a daily reminder of the blaze for locals.

On Tuesday, it was sold off-market to a local developer for $2.9m with plans to restore it to its former glory.

Lead agent Fadi Hajjar principal of Class Realty Bankstown said local feedback was that neighbours are relieved and excited to see movement on the property at last.

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The fire at the apartment block in August 2024. Source: Fire and Rescue NSW online

The blaze was reported to be an accident. Source: Fire and Rescue NSW online

“It’s been a tough sight for the community,” Mr Hajjar said.

“To know the blue tarp is finally going and to have a developer ready to breathe life back into the building – it’s a great sign of confidence for Punchbowl.”

Mr Hajjar said the investigation found the fire was from a former tenant misusing a power point, the blaze went through the top left unit and spread through the roof of the building damaging the other properties.

The property currently without its roof, was completely gutted out including everything from kitchens, bathrooms and its ground floor also ripped out.

“It’s been stripped back all the way through to a shell,” Mr Hajjar said.

“The fire department put up the temporary blue tarp – but that’s been an eyesore for the local residents, when we were there doing inspections they were so relieved that something is finally happening with that building.”

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Inside the Victoria Rd property, which has been stripped back to a shell

A blue tarp has replaced the roof.

Mr Hajjar said engineer’s reports post-fire showed the building could be salvaged and still maintained structural integrity due to its double brick solid construction.

“They don’t build them like they used to,” he said.

“I think that’s the attractive thing about the old red brick buildings, that they are built to last.”

It was a previous sale in the suburb that led the owners to reach out to the agency, with a block of units Mr Hajjar sold earlier this year in the suburb for $3.8m at 13 Rosemont Street North.

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 leading to its off-market campaign and local developer who snapped up the opportunity after seeing the value in its restoration.

The blue tarp has remained boldly in the suburb as a reminder of the blaze

“Their plan is to most likely hold on to it as a long-term investment after bringing it back to its former glory and improving it,” Mr Hajjar said.

“They’ve done several other local developments.

“They are looking to hold on to it and keep it as a little cash cow for them.”

The residence includes four downstairs and four upstairs units with identical floorplans that are mirrored and flipped.

According to Mr Hajjar, the buyers’ plans include an entire refurbishment and once complete, the eight apartments will be offered to the market as rentals.

“They are well-proportioned, two-bedroom units, they are quite sizeable inside and it has a really nice layout so I think the finished product will look quite nice,” he said.

The buyer plans to restore the unit block for rental opportunity.

Mr Hajjar added Punchbowl continues to see uplift, with the Sydney Metro set for completion in 2026 as well as other local developments pushing its strong rental market.

“We find that people who like to buy these buildings are quite wealthy investors and like the fact that they are on one title, you don’t need to strata it and have all those overheads,” he said.

“On something like this, we’re looking like $280-odd thousand a year in rental return for the finished product.”

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