Bondi Beach’s famed Noah’s Backpackers to fetch $70m

Noah’s Bondi Backpackers hostel, with its gun barrel views of Bondi Beach, is expected to fetch upwards of $70 million in what is considered to be the of the largest development opportunities for the popular beach strip in the last decade.

Having fielded many unsolicited offers for the 1087 square metre, 260-bed hostel and retail outlets at 2-12 Campbell Parade, the long-term private family owners decided to test the market for the asset, which comes with rezoning approvals and the going concern of the backpacker operations.

The hostel made headlines in 2020, and again last year when it was hard hit by the global pandemic and many positive COVID-19 cases forced its closure. After extensive deep cleaning it has reopened in time for the return of international backpackers and tourists.

The property is listed with the Colliers team of Miron Solomons, Matt Pontey and Henry Burke, with Oxford Agency’s Daniel Marano and Ralph Garofano. The agents said it is seen as a gateway site because of its proximity to the famous beach.

“This is by far the largest and most compelling development opportunity delivered on the eastern beaches in the last decade,” Mr Solomon said.

With its well-known colourful facade, it is expected the property’s development potential will attract interest from local, interstate and international buyers.

Sydney’s eastern suburbs have been a proven performer over the past few years, with investors and developers locally and abroad targeting more risk-adverse, tightly held suburban markets.

“With supply remaining limited and the low interest-rate environment, it is likely that suburbs such as Bondi Beach will continue to thrive, especially as developers continue to shape and change the face of this exciting market,” Mr Marano said.

Nearby at the seaside suburb of Bronte, the private developer Fortis has expanded its portfolio with the purchase of a $44 million site which has an end development value of around $125 million.