Capsule hotel collects $13.5m

The George Street investment sold on a 4.2 per cent yield.

One of a handful of Australian capsule hotels – built into a small seven storey Haymarket building – is speculated to have sold to an offshore investor for $13.5 million.

The result for the Space Q at 752 George Street reflects a 4.2 per cent yield.

Space Q contains 60 pods over four floors.

The vendor, Roje Brothers Pty Ltd, held since 1992.

Knight Frank’s Linda Zhu and Dominic Ong with Savills’ Jordan Lee and Andy Hu were the agents.

Space Q Capsule Hotel

Established in late 2017, Space Q contains 60 pods across the top four floors.

With single and double beds, capsules cost less than $60 per night.

The bottom three levels are a restaurant, leased to Hisshou Teppanyaki.

All up there is 966 square metres of lettable area (story continues below).

The 231 square metre George Street site can accommodate a building twice as tall.

The site, spreading 231 sqm in Sydney’s Tech precinct, could accommodate a c15 level building.           

The deal comes three months since developer Anson Group paid c$50m for the suburb’s popular Golden Century restaurant, on 708 sqm.

A c14 floor structure is anticipated there.

Last year, Vietnam backed Arthur Winston Investments purchased a collection of neighbouring Haymarket properties, including the historic Seagrave House, for c$25m.

All up covering 560 sqm, that holding was marketed for its potential to yield a c17 storey tower.

Elsewhere in the area, near Central train station, Dexus and Frasers Property Australia recently received the green light to construct an office based mixed use project with a c$3 billion end value.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of