Townhouse development sites on Sydney’s north shore have emerged as a sweet spot for Chinese developers, with more than $45 million in sites changing hands in the past six months.
In the most recent sale, Chinese developer Vantager Group this month snapped up a Pymble site at 14 Park Crescent. The 1,358 square metre site has potential for circa nine townhouses.
Selling agent Danny Shi, of CBRE’s NSW Asian Services Desk, said the sale followed three townhouse sites in May – two of which had been snapped up by Chinese developers.
A further two sites had been sold in the proceeding months – both to Chinese development groups.
“There has been significant demand for townhouse development sites on Sydney’s north shore, particularly from Chinese groups who perceive townhouses to be lower risk than apartment products in certain suburban locations,” Mr Shi said.
“Many north shore markets remain undersupplied with medium density development product and there has been a limited number of quality townhouse projects, which is helping to drive buyer demand.”
Of the six townhouse sites sold by CBRE in the past six months, four were sold off market
The largest sale, for $13 million, involved a Lindfield site at 18 & 20 Bent Street, which was acquired by Chinese developer Harvestone Wellmaas. The site was DA approved for 16 townhouses.
Other significant transactions included a record price sale to Chinese developer Dong Zheng of 8 & 10 Warrangi Street, Turramurra – a site with DA approval for 11 townhouses.
CBRE has also sold two St Ives townhouse sites, one to a local buyer and one to a private Chinese developer. The sites, which were sold for $8.5 million and $6.8 million respectively, can accommodate circa 22 townhouses.
Just prior to Christmas, another major site changed hands with KLF Group acquiring 29,29A and 31 Moree Street, Gordon for $10.15 million. The site is approved for 15 townhouses.
Mr Shi noted that more transactions were in the pipeline, with Chinese developers continuing to pursue both DA approved and potential development sites in suburbs such as Chatswood, St Ives, Lindfield, Gordon and Turramurra.
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