This article is from the Australian Property Journal archive
PROPERTY developers are pre-empting the implementation of the NSW government’s New Parramatta Rd project, by swooping on available residential sites.
According to CBRE, developers have been buying up houses in one line with a view to capitalising on future rezoning opportunities arising from the Parramatta Rd precinct.
The project is focused on the land adjoining and at least one block back from the 20km roadway, as well as eight identified growth precincts.
CBRE’s manager, capital markets, Nick Tuxworth said canny developers were moving ahead of the project’s implementation.
Recent acquisitions include the purchase of collection of individual properties in Burwood for a total of $9.65 million. This comprised 2, 4, 8 and10 Hornsey St, 2-4 Stanley St and 7-13 Conder St. Another significant sale involved 9-13 Gloucester Avenue, Burwood, which sold for $7.6 million.
“Off market deals are occurring, with developers buying up houses in a line or offering options to home owners to purchase their properties subject to rezonings occurring as part of the New Parramatta Rd urban renewal,” he added.
Tuxworth noted that developers were showing a particular interest in sites without development applications, believing they could acquire these more cost effectively and add value.
“Whilst the market’s perception may be that development site acquisitions are slowing down, from the conversations that we have been having with developers, there is still significant activity,” Tuxworth added.
However CBRE’s Victor Sheu cautioned property owners and highlighted that further clarity on the government’s New Parramatta Rd strategy was required to ensure that vendors and purchasers could compose deals that resulted in win-win outcomes.
“Home owners likely to benefit from the New Parramatta Rd uplift should be prepared in terms of understanding the procedure of selling amalgamated sites
“They also need to recognise that, until there are any public exhibitions or official announcements, it is extremely difficult to provide definitive advice on site values because of the potential pricing fluctuations and demand changes that could occur in the market for residential developments,” Sheu said.
Australian Property Journal
