Rezonings help North Ryde become Sydney's hottest suburb
North Ryde's houses recorded the strongest median price growth of those in any Sydney suburb in the latter part of 2014, according to Domain Group senior economist Andrew Wilson.
Between the six months to December 2013 and the same period in 2014, North Ryde's median house price jumped 34.9% to $1.25 million.
Wilson attributes much of the growth in large part to rezoning measures, which now allow high rise development along railway lines in North Ryde and Epping, among other areas in Sydney.
"That's caused quite a bonanza of activity for the homeowners who have been in the rezoned areas", Wilson tells Property Observer.
In 2013, the state government announced Rose Bay as one of eight areas in its urban activation precincts program. A 12.5 hectare site, set around 15 kilometres north-west of the city and bounded by the M2, Epping and Delhi roads, was identified as under-utilised.
The strong demand in areas of North Ryde has largely come from developers, says Wilson.
"We've seen a real land-rush from developers trying to secure properties in those areas."
While he notes that the area has "been a strong market for the Chinese community as well", Wilson says "developers are really climbing over themselves to secure property".
Home owners have notably taken advantage of developer interest in the area, with one group of eight residents selling their properties in one line for $30 million to developers last year.
In May, a developer, Great Wall Investments Pty Ltd, purchased two neighbouring properties at 43 and 45 Jopling Street, North Ryde (pictured below).
The vendors were two residents who had been living side by side for around 30 years, according to agent Ben Boutros. He estimates that each property might have sold for $1 million separately. Together, the two homes sold for $2,887,000, with each seller taking home a 50% share.
Great Wall Investments now plans to build seven villas on the site, with applications lodged for two three bedroom two storey units, three single storey three bedroom units and two two bedroom units.
The results are indicative of what Wilson calls "insatiable demand" in the North Ryde and Epping area since they've been rezoned.
The plans to redevelop the station precinct in North Ryde may be a driver of price growth throughout the suburb, with enhanced public transport, jobs and improved public spaces promised by the New South Wales government.
4 Beatrice Street in North Ryde (pictured below) sold in North Ryde for $1.27 million in November. In April 2010, it sold for $850,000, a difference of $420,000 (49.4% growth) in three and a half years.
After 15 years of ownership, the vendors of 50 David Avenue (pictured below) sold the property for $1.45 million late last year. They paid just $172,000 in January 2000, with 743% growth over the 15 years.
The investment property is currently rented advertised to rent at $525 per week, reflecting a rental yield of 1.8%.
Wilson notes North Ryde's market performance is in part due to "the overall Sydney zing", with low interest rates, buyer confidence and a strong local economy propelling prices. However, according to Wilson, prices have been "exacerbated by a lot of developer activity".
