This article is from the Australian Property Journal archive
ALFASI has sold a Sydney CBD development site, which has been earmarked for a boutique hotel.
JLL Hotels & Hospitality Group vice president Andrew Langsford said the quick sale of the 183-185 Clarence St property to a new entrant into the Australian property market, highlights the continued strong demand for assets.
“The property, which has been earmarked as a potential hotel development, was settled in just over five weeks from the commencement of an Expressions of Interest campaign.
“The deal highlights the continued demand for well-located development opportunities,” he added.
The 1,030 sqm site, a former Ausgrid substation, comprises two heritage buildings which are earmarked for a hotel and residential development. The site has a height limit of 60m.
The sale follows a number of similar transactions by groups comfortable with new hotel developments such as Ninety Four Feet and the Yeh Family.
“The positive outlook for the Sydney hotel market is underpinned by continued strong trading fundamentals. Whilst there has been an increase in proposed new hotels, across the Sydney CBD and surrounding areas, any new supply is expected to be readily and easily absorbed by the market given the current high trading levels and strong forecast annual growth over the coming years.” Langsford said.
The low Australian dollar continues to be a driving factor for both Domestic and International tourism. Tourism Research Australia recently indicated that domestic travel has shown further growth with overnight trips up 7% and spend growing 6%, as at year end September 2015.
International visitor nights were up 10%, with inbound travellers spending a record $34.8 billion, an increase of 13%. Most notably visitor numbers from China increased by 22% over the same period with spending increasing a significant 43%.
Australian Property Journal
