Madison Waterloo aims to maximise small spaces: June 30 investor bonus countdown

New Waterloo development Madison hopes to appeal to Sydneysiders who believe that good things come in small packages – and investors or upgraders, who have until July 1 to make up their minds to avoid paying stamp duty on the offerings under $600,000.

Construction is due to begin on the Elizabeth Street site next month and is expected to be completed at the end of 2013. The development launched in mid-May and is about 50% sold.

The 47 one-, two- and three-bedroom apartments “have been meticulously designed to take full advantage of every square inch of space,” says the marketing.

The 22 one-bedroom apartments (which come with studies/media rooms) will range from 58 square metres to 68 square metres internally and are priced from $489,000. The 13 two-bedroom units start from $595,000 and range from 72 square metres to 78 square metres. There are 10 two-bedroom apartments with studies or media rooms, and they range from 79 to 94 square metres internally. There are just two three-bedroom offerings, with prices starting from $899,000. They are 109 square metres.

First-home buyers might want to hold off until October 1 before they purchase in order to take advantage of the recently announced first-home bonus of $15,000, but investors and upgraders who want to buy one of the units under $600,000 would be exempt from stamp duty until July 1 under the NSW home builders’ bonus. From July 1 investors or upgraders will only be entitled to the NSW $5,000 new-home bonus if they buy off the plan.

The project is being developed by Loftex and is being marketed by Whiterock Residential Projects. Whiterock Residential Project chief executive Andrew Donnelly says investors and first-home buyers are increasingly moving to Waterloo.

“There is a major shift happening,” he says.

“With over 85% of apartments being sold in the inner west and eastern suburbs to first-home owners, young professionals and investors, the trend is now moving towards greater affordability and smarter, more efficient architectural design.”

The project has been designed by architectural firm Nettleton Tribe, and units have floor-to-ceiling windows to take advantage of parkside views.

The majority of the one-bedroom apartments and some of the two-bedders do not have parking, but Loftex general manager Rob Turchini told Fairfax Media he expected lack of parking would not deter buyers.

“We've found there's not much resistance to that because it's close to Green Square station and has a bus stop out the front, share cars and scooter parking," he says.

The median unit price in Waterloo is $513,000, according to RP Data, and unit prices fell 5.1% in the past year. The median asking rent is $550, and the indicative gross rental yield for the suburb is 5.6%.