A recently flurry of close to $50 million worth of commercial property transactions in south-west Sydney will pave the way for a wave of new development over the next decade.
CBRE’s investment and development properties team has transacted $44.45 million in commercial property over the past four weeks, underpinned by a resurgence of Chinese buyers swooping on development-grade stock across the region.
In Edmondson Park, a Chinese investor secured a 10-acre site at 132-150 Croatia Avenue for $14 million. A high-rise apartment and townhouse project is mooted for the site, which is located on the door-step of the Edmondson Park train station.
CBRE’s Thomas Mosca said the sale was evidence of strengthening investment appetite levels for development-grade stock in Sydney’s high-growth areas.
“Over the past several months, there has been a significant uplift in enquiry from both local and offshore developers for secure opportunities in south-west Sydney’s hottest growth areas,” he said.
“We are starting to see a number of development applications for both Austral and Edmondson Park – further reinforcing the belief that these two suburbs will develop before the larger centre of Leppington, which is still many years from flourishing.”
Further evidencing the trend, a separate Chinese investor secured a 22,000 square metre mixed-use development site in Austral for $13.95 million.
Located on Edmondson Avenue, the property has been earmarked for redevelopment over the coming years, with potential to accommodate a mix of residential and commercial upon completion.
“The majority of recent property sales in this south-western pocket have been secured by Chinese purchasers looking to land bank these opportunities and bring them into fruition once the timing for these areas is right,” Mr Mosca said.
“The developable potential of stock is pivotal to the recent flurry of transactions, with buyers hungry for sites that offer scope for both present and future development.
“The bulk of demand is for properties that can accommodate house and land style packages, while there is also a more niche group of buyers seeking properties that can accommodate high-rise sites.”