Savills sees price resurgence in Haymarket, Sydney commercial sites
Record prices have been achieved for commercial property in the southern end of the Sydney CBD.
More than $78 million worth of assets have been sold in the past few months in Haymarket and surrounding streets.
These suburbs are making a comeback on the back of new infrastructure and development, with recent changes to planning controls attracting a new wave of buyers, according to Savills.
Executive for Metropolitan & Regional Sales at Savills Australia, David Hickey, said the Sydney CBD’s southern corridor was becoming one of the city’s “most dynamic locations”.
His observations follow the sales of 410 Pitt Street for $22.5million, 810-812A George Street ($14.65million) and 94 Hay Street ($16.3million) in Haymarket, and 332 Kent Street ($25million) in Sydney CBD.
“Haymarket is known for its proximity to the southern end of the CBD and all the amenities that it has to offer, including major colleges and universities, Chinatown and Central Station,” Hickey said.
“The recent changes in planning controls give incoming purchasers and developers a substantial opportunity to maximise the uplift and achieve greater density in new projects, providing they can amalgamate adjoining properties.”
Hickey and colleagues Tom and Nick Tuxworth will bring another Haymarket property, 8 Cunningham Street, to market with expectations of circa $5 million.
It is a three-level freehold with 434 square metres of internal area in the heart of Chinatown’s retail trade precinct.
Hickey said it allows for a variety of future configurations and uses, including multi-level office space, hospitality, retail or student accommodation, subject to council approval.
He also predicts an increased level of interest from the residential market for this property because the residential market in Sydney has slowed considerably across the metro area.
"But the city and fringe suburbs have remained extremely strong,” he said.
8 Cunningham Street is within close proximity of a variety of public transport options, including Central Station, several bus routes and the George Street zone of Sydney Light Rail.
There is secure off-street parking for one car.