Buyer who bet on Darlinghurst dump set to make up to $3 million windfall

The buyer of the worst house on a Darlinghurst street, an unwanted dump that’s been empty for 30 years, is set to make a windfall of up to $3 million on his purchase.  

That derelict ugly duckling site is about to undergo a multi-million makeover to turn it into a $7.4 million apartment building.

Neighbours were shocked when the ramshackle house on Surrey Street, with holes in the ceiling, walls and floors, was sold for $2.25 million in October last year. But now the buyer is having the last laugh. 

A Development Application has just been approved for a five-level unit block housing 10 studio apartments, designed by Gelder Architects and named Soho on Surrey. The build cost has been quoted at between $1.8 million and $2.3 million, leaving a substantial profit.

The studios, with internal sizes ranging from 30-45 square metres and each having either a balcony or courtyard, are to go for sale off the plan in September. Prices will range from $640,000 to $830,000 for the two largest, split-level mezzanine apartments.

After

Before

“It’s just a good street in a great location,” says agent Dominic D’Ettorre, principal of D’Ettorre Real Estate. “We’re just waiting for the construction certificate to be issued, then we can go ahead with the sales.”

Surrey Street is a quiet, tree-lined street running between busy Craig End Road in Kings Cross and Victoria Street in Darlinghurst. It’s made up mostly of terrace housing, much of which has been renovated into smart, contemporary homes.

The site at 74-76 Surrey Street has been the exception. One of the two buildings there was once a cobbler’s shop, with the second on the same title used as two one-bedroom apartments. Later, they were both inhabited by a bohemian artists’ colony until its members moved on.

The site has been an eyesore for many years, as it crumbled into dereliction, and the back garden became an overgrown jungle. Neighbours were worried that it could cause danger to adjoining sites and prove a breeding ground for vermin, as well as fretting that it was bringing down the look of the entire neighbourhood.   

Now the boutique block to be built on the site is advertised as offering “over-sized” north-east-facing studios that will be “sleek and stylish”, with loft apartments at the top. They’ll have lift access and access to common gardens, bike lockers and storage areas.

“We’re expecting demand will be strong,” says D’Ettorre of the building that’s being developed by a private building company whose director does developments as a sideline. “It’s very convenient for Kings Cross train station, St Vincent’s Hospital, the Rushcutters Bay foreshore and all the cafes and restaurants of the area.

“Surrey Street is also regarded as one of the best streets in Darlinghurst.”