Sydney developers in bigger rush than buyers as projects come to market without final DA as June 30 deadline looms

Sydney developers in bigger rush than buyers as projects come to market without final DA as June 30 deadline looms
Cassidy KnowltonDecember 8, 2020

As time runs out for property buyers to secure NSW state government incentives, some developers are bringing their projects forward – and others even beginning marketing before they have development application approval from the local council.

Moorgate Property’s Rockpool (pictured below), which is on the former Prince Henry Hospital site in the Sydney suburb of Little Bay Cove, is one such project that's hit the market this month.

NG Farah agent Peter Goulding told Property Observer Rockpool was due to launch later this year but the development was brought forward so buyers could take advantage of the NSW government’s home builders’ bonus, which exempts buyers from stamp duty on new properties under $600,000. The exemption is open to all buyers, both owner-occupiers and investors.

About 60% of the 73 units in the building will be under this threshold.

“The building has been engineered to provide a large volume of lower priced product, for the market place to obtain the full benefit of the government stamp duty concessions which expire on the 30th June 2012,” says NG Farah agent Dennis Vertzayias.

Rockpool will comprise one- and two-bedroom apartments. One-bedroom apartments start from $465,000, and one-bedroom apartments with studies start from $475,000. The two-bedroom offerings start from $579,000, with $650,000 the starting price for two-bedroom units with studies. 


“This will allow first-home buyers, astute investors, and even second-home buyers the opportunity for affordable housing in a brand-new development in one of Sydney’s most rapidly developing locations, so close to the city centre,” says Vertzayias.

Goulding says the building has been approved under the master plan for the Prince Henry Hospital site, but it has not secured final development approval from Randwick Council. He says the developer expects approval in September or October this year.

The original hospital that sat on the 85-hectare site dates back to the 1880, and by the time the renamed Prince Henry Hospital was decommissioned in 2001, it had sprawled out to 60 buildings. The NSW government and developer Stockland announced a plan to transform the site into a $400 million development in 2004. The community is now home to more than 600 households.

 


Another project brought to market before receiving development approval is Harbour Mill (pictured above and below), to be built on the former Edwin Davey Flour Mill site in Pyrmont.

Developer Ceerose bought the 3,100-square-metre site last year, but the sale is yet to officially settle, according to a land title search. The previous developer Mike Boulos, who had intended to build a seven-storey mixed-use development on the site, never had his plans came to fruition. Boulos had bought the site in 1996 for $3.38 million.

Sydney City Council was pleased at Ceerose’s competition to find a design for the long dormant, but high profile site. The winning design by Grimshaw Architects - which includes much of the heritage façade of the former flour mill - has not yet officially been approved. The DA is before the council now, and approval is expected later this month.

Another Sydney development that has been marketed without receiving the final sign-off from council is Oceania Property’s Bay Residences (pictured below). Oceania bought the Double Bay site for $20.5 million in January 2011, with the site having previously traded at $15 million in 2007.

It had planned to build a luxury development of just eight units and secured approval from Woollahra Council for the project, but failed to generate any interest from buyers. The developer went back to the drawing board and reconfigured the project into 21 smaller one- and two-bedroom units, lodging a section 96 alteration application with the council. The 21-unit Bay Residences has been brought to market, but council approval is still pending.

“The councillors and council staff I’ve spoken to are very supportive of the changes because it will mean more residents will now be able to live in Double Bay,” says Nico Wijarto Tjen, a director of Oceania Property, “and the new apartment mix will also mean younger residents.”

Developer Mirvac is yet to receive final greenlight from Sydney City Council for its Harold Park development in Glebe (pictured above), but is expectant of doing so shortly.

The City of Sydney set out a prescriptive local environment plan (LEP) for the site following detailed consultations, and Mirvac has signed a voluntary planning agreement with the council for Harold Park.

Mirvac began marketing of Harold Park late last year prior to obtaining final development consent in the confidence that its plans were fully compliant with the Harold Park LEP which establishes the parameters for permissible height and density. The LEP has been approved and gazetted by the NSW Government.

The NSW Government rezoned Harold Park from open space to mixed use residential late last year paving the way for Mirvac to progress its Stage 1 development application which is the masterplan DA.

Marketing of Stage 1, consisting of 296 apartments and terraces, began in late 2011 as Mirvac was aware of a pent-up demand for its apartments and terraces.

"The enthusiastic response to the launch in November and subsequent sales have exceeded all our expectations," a spokesman said.

As part of the agreement, Mirvac is dedicating 3.8 hectares (or 35% of the site) to public parkland and will contribute $8.25 million to public open space. The developer will also hand over 1,000 square metres to the City of Sydney to accommodate affordable and seniors’ housing.

Mirvac hopes to start work on the site in August, but that is contingent upon receiving Sydney City Council approval in the interim.

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