Hotspots: Brisk unit sales and commercial property revival in Chatswood
The transportation and shopping hub of Chatswood on the Sydney lower north shore registered 450 house and unit sales worth a combined $382 million in 2011, with its ranking on the RP Data Top 100 list of house and unit aggregate sales soaring from 34th to 17th in the space of a year.
The year was dominated by unit sales, with 308 apartments sold during the year at a median price of $605,000. Off-the-plan sales, including the sell-out of Mirvac’s 42-storey Era tower, were not included.
There were 142 house sales over the year at almost double the unit median at $1.2 million.
RP Data research shows that Chatswood unit prices increased by 4.2% with a yield of 4.4% over the past year while house prices managed growth of 0.6%.
Chatswood has a predominantly Asian population and is well known for its Asian eateries and vibrant shopping culture centred along Victoria Avenue. Shopping centres include the Westfield Chatswood and Chatswood Chase Sydney.
It continues to attract Asian buyers and investors, both locally and offshore, according to local estate agents.
McGrath agent Jon Dundas-Smith notched up three big sales in Chatswood to Chinese buyers last year, telling the Sydney Morning Herald a lot of money was coming in from China.
The area has also benefited from the parents of Asian students picking up properties and putting them in their children’s names – the downside is they have to be sold when they leave the country.
The suburb is also the focus of a commercial property revival, with demand for office space picking up as Chatswood’s status as a sought-after fringe business location rises.
According to the most recent Property Council of Australia Office Report the vacancy rate in Chatswood offices decreased from 17% to 10.7% over the six-month period to December 2011.
Investment group FKP is currently developing a new alfresco restaurant, café and shopping hub as part of its refurbishment of 15-storey office building.
The Avenues will be developed outside 465 Victoria Avenue in the western precinct of Chatswood bordering Railway Street, Brown Street and Victoria Avenue and is due for completion in mid-2012.
According to property managers RUN Property, Chatswood experienced above inflation growth in rents from January 2011 to January 2012, with weekly rents increasing from $570 a week to $600 over this period.
Daryl Katz from Shead Property Chatswood is currently selling a 65-square-metre two-bedroom renovated apartment (pictured above) on Hampden Road in neighbouring Artarmon with offers sought in excess of $460,000.
It last sold in December 2005 for $352,500.
The property is currently rented at $450 per week, representing a yield of just over 5% at the listing price.
Katz describes the property as an “outstanding entry point for first-time investors, or to complement an existing investment portfolio”.
Saesar Liu from Great Fortune Investment Chippendale is selling a one-bedroom apartment on Help Street that includes use of a cross-shaped swimming pool (pictured above), complete with palm trees. The apartment is up for sale in the mid- $400,000s.
It last sold in July 2006 for $305,000
It is currently rented at $450 per week. At a sales price of $450,000, this equates to an estimated yield of 5.2%.
Main photograph by Christopher Chan