It will be at least five years until Sydney’s apartment building boom meets underlying buyer demand and reaches a more balanced market, according to Robert Mellor, managing director of leading property analysts BIS Shrapnel.
“In three years, apartment construction has gone up by about 120 per cent, so there’s a boom going on,” he says. “But there was such massive undersupply in Sydney’s market by 2012, that it’s taken until now to even start to eat into it.
“The supply has improved for land, but it’s been drip-fed to a degree because the developers don’t do large-scale projects as big as Melbourne’s. They tend to release things in small stages, but the speed of apartment projects has improved significantly.
Artist’s impression: The $300 million development at Chatswood by Platino Properties is described as a ‘neighbourhood within a neighbourhood’ close to the Chatswood CBD. Photo: Supplied
“Even by 2009, there was more than half a year’s undersupply in terms of underlying demand, and that figure just skyrocketed between 2011 and 2013. The trouble is you’ve got this pent-up demand for 50,000 or 60,000 dwellings.”
Mr Mellor says about 60 per cent of the demand for apartments in Sydney comes from investors and only 40 per cent from owner-occupiers.
One major Sydney developer to leap enthusiastically into the apartment boom is Platino Properties, which is about to launch its biggest project yet, a $300 million development at Chatswood that it describes as a completely new neighbourhood.
Artist’s impression: The new precinct will have its own amenities, shops, a dining precinct and community facilities. Photo: Supplied
Chatswood Place, at 260 Victoria Avenue, covers almost an entire block a short stroll from the heart of Chatswood’s CBD and will include 223 apartments over five buildings, released in two stages.
Platino Properties residential director, Jonathan Leib, says the new precinct will have its own amenities, shops, a dining precinct and community facilities including childcare services.
“We like to think of it as a neighbourhood within a neighbourhood,” he says. “We’ve created a symphony of architectural styles, including an original heritage house on the corner that we’ll be restoring and re-adapting for modern use.
Artist’s impression: Chatswood Place, at 260 Victoria Avenue. Photo: Supplied
“Our development sits on the edge of Chatswood CBD, so consequently on one side we have very modern urban architecture and on the other, opposite the suburban part of Chatswood, we’ve gone for a more traditional style.
“In the centre is a heritage house that has been sitting on that corner for more than 100 years, so the challenge for the architects was to create a variety of styles that all sit within a common architectural language.”
Leib says the buildings range from two to nine storeys. Studio apartments start at $725,000, one bedrooms range from $750,000 to $995,000, two bedrooms from $1.2 million to $1.6 million and three bedrooms from $1.95 million to $2.5 million.
“In addition we have these two magnificent four-bedroom penthouses in the $3.5 million to $4 million range. They are just enormous.
“The development has a one or two-level podium, depending on which part of the site you are in, and that’s basically where the commercial and shopping district is situated. The five apartment buildings sit on top of that podium.
“When you come to the bottom of the residential area there’s a private communal garden. On the apartment rooftops there’s the pool, gymnasium, barbecue areas and sheltered entertainment pavilion that’s also for the residents’ exclusive use.”
Selling agent David Milton, of CBRE, says a display unit at the site will be open for viewing on November 14 and sales will start on November 21.
“It covers nearly a whole street block, which has allowed an enormous opportunity for views, garden corridors, light and space,” he says. “It spans the buyer market but will appeal particularly to owner-occupiers.
“You’re not in a high-rise tower and everything around is two-storey housing, so you have these really open views that you don’t normally get – and the convenience is just absolute. It’s only 100 metres walk to Chatswood Chase.”
For more information, visit chatswoodplace.com.au.
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