Sydney, 26 April 2016- The Sydenham to Bankstown urban renewal project is creating a huge demand for land as developers look to take advantage of the future rezoning possibilities which will create up to 36,000 new homes along the rail corridor.
The project looks to create more homes and jobs that are within walking distance from Sydenham, Marrickville, Dulwich Hill, Hurlstone Park, Canterbury, Campsie, Belmore, Lakemba, Wiley Park, Punchbowl and Bankstown railway stations.
CBRE’s Manager, Capital Markets, Nick Tuxworth said many developers are willing to take the risk and snap up property despite the fact that they might not get rezoned for another five years.
“There is a huge demand for land within the vicinity of 400m from inner west train stations. Developers know that the project is going ahead, but in some cases it may take several years for the rezoning to happen – most are willing to wait,” Mr Tuxworth said.
“The number of homes planned is a significant change for the area which is drawing local and international developers. The high levels of interest mean there is a lack of stock and therefore prices are being driven up.”
Recent sales within the last 12 months include four lots at 1-7 Cleary Avenue in Belmore, for $8.4 million and 14-16 Dudley Street in Marrickville for $4 million; both were purchased by local developers.
CBRE also has two significant parcels of land currently on the market including 129-133 Ninth Avenue in Belfield which has a DA lodged for 15 townhouses and 548 Canterbury Road in Campsie with DA for 460 units secured by CBRE senior manager Alex Mirzaian.
CBRE’s Victor Sheu, Capital Markets Asian Specialist, said that Chinese buyers are showing increasing interest in the areas along the development corridor.
“Chinese capital is still flowing into Australia due to a tightening in terms of capital growth in the Chinese property market in first-tier cities and oversupply evident in second-tier cities, leading to an overall plateau across the country,” Mr Sheu said.
“Sydney remains the prime attraction to Chinese investors, developers and land bankers, especially locations within a 20km of the CBD. All the stations within the renewal corridor fall into this category.”
“The majority of Chinese investors like the ‘buy and hold’ method, rather than flipping short term for minor profit. However, they also want to see a return on their investment. The inner-west and the current uplift of the Sydenham to Bankstown line becomes the best of both worlds – perfectly located for strong resales in the current residential market with the value to buy and hold,” Mr Sheu concluded.
For Australian/international news or global stories, follow us on Twitter.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
