31% investors in Desane Group's Easton, Rozelle sales

31% investors in Desane Group's Easton, Rozelle sales
Jonathan ChancellorDecember 7, 2020

Analysis of the sales last year in Desane Group's Easton, Rozelle project indicated that 31% of the apartments were sold to investors.

The remaining 69% of the apartments sold to owner occupiers.

While 31% is a strong investor presence historically, it is below the current Sydney norm. Perhaps the Easton project is attracting a strong owner occupier interest as its strata will be a pet friendly block.

Some 12% - three - of the total sales were Foreign Investment Review Board approved buyers, all from China.

The five storey project comprises 11 one bedroom apartments, 16 two bedroom apartments and 2 three bedroom apartments, as well as 3 commercial suites and 45 car parking spaces.

Last June, Desane reported 15 of the 29 residential apartments had sold, with prices ranging from $595,000.

CBRE Residential Projects, headed by Ben Stewart and Caroline Fagerlund, secured the off the plan sales at 47-51 Lilyfield Road. During the later stages of marketing Desane had prices for a one-bed-plus study (72 sq m) at $795,000; the two-bedrooms (86-107 sq m) from $895,000; and the three-bedrooms (116 sq m with a large terrace) from $1,395,000.

Construction for the project is expected to be completed by September this year.

Desane Group has exchanged contracts for 26 of the 29 residential apartments totalling $23.6 million, averaging $12,100 per square metre.

When completed, the project is expected to generate sales of up to $27 million, Phil Montrone, the managing director advised.

Desane Group owns $52 million of properties and other assets.

"Much of the attraction for own occupiers was that the Easton Apartments project was its location in a well established inner Sydney suburb, with the historical Easton Park being just 50 metres to the west, the bus stop to the Sydney CBD, only 100 metres to the east, with the next bus stop being in the CBD," Phil Montrone said.

"The inclusion of the pet friendly provision in the body corporate has also played well with owner occupiers, where the majority of purchasers of the 2-bedroom apartments are aged over 40 and are existing Sydney inner city residents and lower North Shore residents."

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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