Bondi Junction apartment sells for a staggering $800k less than the suburb average

An apartment in a popular Sydney beachside location has sold for a massive $800,000 less than the suburb's average. 

The studio apartment at 209/29 Newland Street in Bondi Junction, in Sydney's east, sold for just $400,000.

The median apartment price in Bondi Junction is $1.2million, while for houses it is  $2.65million. 

The surprise sale was finalised on October 31, which was ahead of the scheduled auction. 

It was the nation's cheapest sale for the weekend of results, according to Domain. 

Bondi Junction is adjacent to the famous beachside suburb of Bondi, where the median house price sits at a whopping $3.76million.

Real estate agent Andrew Kalaizis, from Ray White Park Coast East, told Daily Mail Australia that the low sale price was due to the substandard condition of the property.

'It's a studio without parking and to be honest it was in poor condition,' he said.

Mr Kalaizis said another similar property in the complex sold last year for $356,000. 

The 4.9m by 6.1m second floor apartment is situated at the back of a block of flats and comprises combined sleeping and living areas.

The kitchen is designed in galley style and features a full-size oven, four-plate cooktop and a generous sink. 

The modest bathroom includes a shower, a vanity and yellow-coloured tiles on the floor and inside the shower.  

There are polished floorboards throughout the property and a sizeable mirrored-cupboard is fitted for storage.  

The address, which did not come with a car parking space, is close to parks and the major shopping precincts of Westfield and the Eastgate mall.

The apartment complex boasts a roof-top pool and sundeck for residents to enjoy. 

Ray White Park Coast East, the agency that sealed the deal, estimated the rental income at $400 to $450 per week.

'Here is an outstanding opportunity for both first home buyers and astute investors to enter the property market in a very respectable price range,' the agents said on the property's listing.

The apartment sale was one of 579 sales in Sydney reported to Domain for the weekend of November 11, contributing to the city's 64.9 per cent clearance rate, which was an improvement on the 53 per cent recorded this time last year.

The record price for a flat in Bondi Junction is $5.6million paid in 2022 for a five-bedroom apartment fitted with a cocktail bar and panoramic Sydney harbour views.

According to PropTrack data, the median home value in Sydney was $1.07million last month, 7.51 per cent higher than a year ago and 31.7 per cent more than in March 2020 when Covid first hit the economy.

Melbourne's median at $815,000 was 3.9 per cent lower than 12 months ago and 16.6 per cent above the pre-Covid level. 

Overall, national house prices crept 0.36 per cent higher in October, bringing the rise to just under 5 per cent for 2023, according to PropTrack.