Property Development

Sydney developer Ecospective Property buys in Showground

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Written by The ReReport
As seen in the Source link, written by commercialrealestate.com.au on 2019-01-29 03:14:03

New developer Ecospective Property has taken over a 1-hectare site in Showground, one of Sydney’s newest suburbs in the north-west growth corridor, for $40 million as the rezoned area continues to draw developers.

Though house price movements in the area have been following a downward trend, it is its future growth – likely to be propelled by the Sydney Metro fast train that will commence later this year – which has attracted developers and investors.

Ecospective snared the 9634 square metre site at Carrington Road in Castle Hill, an amalgamation of 11 properties, with plans to build a multi-stage project of about 300 apartments across several mid-rise buildings.

Colliers International’s Guillaume Volz, Paul McGlynn and Zhenni Lu brokered the sale of the Carrington Road.

“Fundamentally we are very confident in the Sydney residential market,” an Ecospective spokesperson said.

“With the opening of the Sydney Metro North West imminent, residents will very quickly realise how dramatically the Metro will upgrade transportation, improve retail, bring employment and provide better access to education.”

Showground, situated next to the historic Castle Hill Showground about 36 kilometres north-west of the Sydney CBD, is underpinned by a new metro station which will allow residents to travel by fast train to the CBD in about 45 minutes.

New town centre

To boost development, the NSW government rezoned 270 hectares around the station in early 2018, to create a new town centre and land for 5000 new homes over the next 20 years. .

A key feature of the rezoning is the larger apartments which, while consistent with the family-oriented needs of local residents, have turned off some developers such as Mirvac.

In early 2018, Mirvac pulled out of an apartment development in the precinct after being told of the larger than average apartment sizes required.

For those willing to build larger homes, property advisory firm Charter Keck Cramer’s Bennett Wulff said there would be no shortage in demand down the track.

Based on population projections, Sydney needs 36,000 new dwellings including 27,000 units to be completed every year until 2036, but this number won’t be met due to funding constraints, he said.

“Our research is indicating a decline in apartment completions to circa 23,700 in 2020, Mr Wulff said.

“Approximately 38 per cent of the units comprised within this figure are not yet under construction nor underwritten by construction finance.

“This figure is therefore subject to downward revision should projects not achieve the necessary sales pre-commitments.

“Our current 2021 forecast is indicating a further reduction in completions. Looking ahead, should completions consistently fall short of implied dwelling demand, supply shortages will take effect quickly.”