Foreign interest expected in masterplan approved Nine site at Willoughby

Foreign interest expected in masterplan approved Nine site at Willoughby
Foreign interest expected in masterplan approved Nine site at Willoughby

A lack of approved apartment developments is resulting in interest in the masterplan approved Nine Network site in Willoughby

The Nine Network site, which is to be occupied by the media giant until late 2020, is being sold by Sydney-based property group and funds management company Lotus Group and Hong Kong-based global property group Euro Properties.

Market research compiled by Charter Keck Cramer cites a critical shortage of supply in approved apartment development sites in Sydney.

The report showed the Greater Sydney apartment market fell by over 50% from 33,000 new released apartments in 2017 to just 16,000 in 2018; the lowest number of new releases since 2012. 2019 is expected to be lower again.  

A record 29,200 apartment completions were recorded in 2018 with a further 27,300 forecast to occur in 2019.

The report forecasts a drop to 23,300 completions in 2020 and a dramatic 9,200 completions in 2021.  

In the Lower North Shore, since 2009 there have been approximately 9,000 contemporary apartments completed.

Since 2009, the suburb of Willoughby has seen limited apartment completions with only 226 new apartments constructed across the suburb.

In the short term, there is likely to be limited increases in apartment supply across Willoughby with only one project containing 20 apartments under construction and no projects presently being marketed. 

Colliers International agent Guillaume Volz said it has seen strong interest in the 2.9 hectare Nine Network site on Artarmon Road in Sydney’s lower north shore.

Designed by architects CHROFI, the masterplan approved site, where Channel Nine remains the tenant until late 2020, currently includes approval for 460 apartments across ten buildings ranging in height from four to nine storeys. 

The masterplan also includes a series of public piazzas and publicly accessible open green space creating a village-style community.  

Volz said the lack of supply in the area is driving interest from those looking to add to their development pipelines in two to three years.

“We’ve been surprised by some of the unusual combinations of foreign equity and boutique local developers,” he said. 

“Australia is benefiting as a consequence of global economic uncertainty.

“Foreign capital, largely Asian including Singaporean, Hong Kong-based/PRC and Japan, is looking for a safe haven in quality trophy projects with some parts of the world currently perceived as less stable and with Australia offering strong relations, a weakening dollar and the outlook on interest rates dropping.”

The Nine site, marketed by Colliers International as Willoughby Parkside, closes expressions of interest May 30.

Tags: 
Residentialdevelopments Willoughby

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