Two of the biggest challenges for any property developer can be simply summarised as “where?” and “when?”.
Where, in terms of the location that will generate the biggest return on investment; and when, in terms of timing to leverage variable market conditions.
Answering these questions accurately can take a significant amount of energy, research and engagement with government authorities, tenants and other stakeholders.
If you move too early, you could find yourself on hold for a long time, but equally, if you act too late, you could easily miss the growth.
The fact is, when seeking answers to these all-important property development challenges, unless you have access to a reliable crystal ball, seeking the advice of an experienced property advisor can be invaluable.
A property investment and services firm such as Avenor, with expertise in the initiation and delivery of commercial, residential and major mixed-use projects, can utilise years of collective experience to help navigate the pitfalls of development and ultimately prevent a potential investment failure.
What’s more, Avenor even puts its money where its mouth is, with the company maintaining its own portfolio of landmark developments, meaning they have their finger on the pulse of the development process.
Key drivers for Avenor include infrastructure development and state government policies, which the company analyses to help steer decision-making about where the next generation of commercial and housing density will be focussed.
For example, when the Greater Sydney Commission and the NSW state government created their district plans a few years ago, they envisaged “a 30-minute city” where everyone can get to or from work in half an hour, with a primary focus on creating homes near jobs.
North Sydney piqued the company’s interest with its almost exclusively commercial CBD, which offered no substantial residential accommodation in the immediate area.
As Sydney’s second-largest central business district, North Sydney is home to a diverse range of commercial industries, including service, property, communications and financial organisations.
Government-funded infrastructure currently in planning includes the Western Harbour Tunnel, which will create an integrated road and public transport network stretching from the Warringah Freeway at Cammeray, across Sydney Harbour to the WestConnex interchange at Rozelle, balancing the needs of local motorists and commuters.
The new metro station under way at Victoria Cross will further support the continued growth of North Sydney’s CBD, providing new metro rail access to the North Sydney business, education and residential area.
From 2024, travel time to Barangaroo will be cut down to three minutes, Martin Place to five minutes and Central Station to nine minutes.
Meanwhile, North Sydney continues to grow, with new commercial towers under construction, as well as a new major project including a civic square being created by North Sydney Council.
Along with this continued commercial growth will come a rapidly expanding residential population who will be able to take advantage of the excellent transport links, proximity to Sydney Harbour, cultural and social infrastructure and the open space that North Sydney offers.
These combined factors allowed Avenor to tick the “where” box, and with the state government’s policy demanding homes near jobs, Avenor posed themselves the question: “where is the closest we can get?”
Renowned for being one of the first movers in new markets, Avenor’s extensive research on North Sydney meant they had the confidence to amalgamate a 2,500sq m site on the corner of Walker and Hampden streets, by acquiring 24 individual units to form the largest site zoned for high-density residential development, immediately next to the suburb’s commercial core.
Avenor had also previously identified a strong local demand from upgraders and downsizers, combined with a shortage of premium dwellings on the North Shore—considered as one of Sydney’s most desirable corridors.
Avenor director, Peter Clemesha, says there was little to no supply of residential projects in the North Sydney CBD—clearly a drawcard for the developer.
“Our East Walker Street project will include about 280 apartments across 30 storeys. It will be a unique product because there is little residential product to purchase around this part of North Sydney,” Clemesha said.
“There are also very few tower sites in North Sydney that have both a northern aspect as well as proper views back over Sydney Harbour, Sydney Opera House and the city.
“It’s early days, but people are already submitting their interest, which clearly indicates we’ve made the right move.”
The project has recently received “gateway” determination from the NSW planning minister, with a vision including a revitalised streetscape that enhances the leafy village feel and character of the area and connects the neighbourhood back to the North Sydney CBD.
Only 200 metres from the Victoria Cross Metro Station, the building will sit comfortably within the existing North Sydney skyline.
“We’re looking at starting construction later next year, which is exciting, as we know the delivery of East Walker Street will be timed well with North Sydney’s growth off the back of the new Metro station and newly completed office buildings and retail amenity.
“The time will be right for the project to also make a significant contribution towards much needed affordable housing in the area, as well as new community facilities,” Clemesha said.
That’s the “when” box ticked as well.
For more information on how Avenor can advise on how to unlock the potential value of your property, manage the delivery of your project, add value by de-risking the development process, or help co-fund a development, visit the website: www.avenor.com.au.
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