Sydney, 12 June 2013- The key policy document identifying growth patterns in Sydney for the next 25 years has been released and is closing shortly for comment.The Draft Metropolitan Strategy identifies the settlement patterns, key centres and corridors for growth, as well as infrastructure provision for the urban areas.
There are important changes in the Draft that include Urban Activation Precincts (UAPs), announced as a component of the wider housing and job initiatives contained within the Draft Metropolitan Strategy.A key aim of the UAP is to deliver housing within close proximity to transport, services and jobs.
Mascot Station has been announced as one such UAP, and although the boundaries of the precinct have yet to be defined, it is likely that a large, single ownership holding in a key location would be included within the Mascot UAP. CBRE are marketing one such property, at 7-9 Kent Road, Mascot which is one of several properties coming to the market via CBRE, who are poised to launch over $100 million of mixed use residential sites in the next few months, with an end value close to $1 billion.
The property at Kent Road is owned by PKI Pty Ltd and may yield over 450 apartments, open space and retail.The site is directly opposite the recently acquired $100m site Meriton purchased from Goodman.Meriton remain a strong buyer in the market with another purchase recently of 150 Epping Road in Lane Cove from Bob Rose for $39 million.
Matthew Ramsay, Director of CBRE’s Residential Developments, said; “The site is directly opposite the future Mascot town centre and is likely to sit within the master planning of the Mascot Urban Activation Precinct. The site will attract strong interest locally and offshore.”
The State Government is opening up the opportunity for more development to drive employment and increase housing across Sydney close to existing infrastructure. These changes provide once in a generation change to planning and will unlock opportunities across Sydney for Mixed Use Sites.
Mr Ramsay believes land owners will be the big winners in the change of use and will see an increase in land values; “land owners need to engage with consultants and advisors to ensure that the increase in land value is unlocked. The time for development couldn’t be better with historically low interest rates, change to the planning system and land uses, unprecedented interest from offshore groups, and a housing shortage across NSW.”
Tom Goode, Director of CBRE Town Planning, comments that Growth Infrastructure Plans are proposed as part of the UAPs.The plans intend on bringing together the various State agencies to drive the delivery of the required infrastructure to support the growth of each new centre, in associate with the sub regional planning boards who will be comprised of Local & State Government selected representations.
“As well as bringing together the infrastructure agencies, the UAP process will include engagement with a Community Reference Group, local councils and key stakeholders – which should include land holders.”
Further changes are occurring in the market as overseas investors become more active.The introduction of the Significant Investor Visa (SIV) is expected to see an increase of overseas cash as it grants people investing more than $5 million with residency.Mr Ramsay also comments that local banks should review their 10-15% limit to offshore purchasers, as certain offshore banks are funding residential developments without these restrictions.
Chinese developers are taking full advantage of the SIV and a slow market in China, with the sale of 115 Bathurst Street to Greenland, a Chinese developer for circa $100 million.
The Mascot site will be marketed by Matthew Ramsay and Joshua Charles from CBRE.
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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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 atwww.cbre.com.au.