A recent flurry of close to $50 million worth of commercial property transactions in South West Sydney will pave the way for a wave of new development over the next decade.
CBRE’s Investment & Development Properties team has transacted $44.45 million in commercial property over the past four weeks, underpinned by a resurgence of Chinese buyers swooping on development grade stock across the region.
In Edmondson Park, a Chinese investor secured a 10 acre site at 132-150 Croatia Avenue for $14 million.
A high rise apartment and townhouse project is mooted for the site, which is located on the door-step of the Edmondson Park train station.
CBRE’s Thomas Mosca said the sale was evidence of strengthening investment appetite levels for development grade stock in Sydney’s high growth areas.
“Over the past several months, there has been a significant uplift in enquiry from both local and offshore developers for secure opportunities in South West Sydney’s hottest growth areas,” Mr Mosca explained.
“We are starting to see a number of development applications in both Austral and Edmondson Park - further reinforcing the belief that these two suburbs will developed before the larger centre of Leppington, which is still many years from flourishing.”
Further evidencing the trend, a separate Chinese investor secured a 22,000sqm mixed use development site in Austral for $13.95 million.
Situated along Edmondson Avenue, the property has been earmarked for redevelopment over the coming years, with potential to accommodate a mix of residential and commercial upon completion.
“The majority of recent property sales in this south western pocket have been secured by Chinese purchasers looking to land-bank these opportunities and bring them into fruition once the timing for these areas is right,” Mr Mosca said.
“The developable potential of stock is pivotal to the recent flurry of transactions, with buyers hungry for sites that offer scope for both present and future development.”
He added: “The bulk of demand is for properties that can accommodate house and land style packages, while there is also a more niche group of buyers seeking properties that can accommodate high-rise sites.”
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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
