A $400 million joint venture development in Sydney’s West by developers Shokai Ausbao and Develotek Property Group was launched to market last weekend.
The first stage release of 90 apartments achieved 50 sales, generating a revenue of more than $31 million.
Develotek held options to the one-hectare site nearly two years ago, seeking out a venture partner in the Chinese-backed Shokai Ausbao in order to execute the project.
Sydney-based Develotek amalgamated the site from 38 houses, apartments and industrial buildings for $80 million. The developer reportedly spent a year door knocking the properties without the help of an agent.
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According to the developers, first home buyers were the predominant vendor group, with property investors making up approximately 30 per cent of buyers.
Colliers International’ director of residential project marketing David Lee said that the affordable value proposition offered to first home buyers was key to its success.
“It was also good to see an increase of property investors back in the market,” Lee said.
Due to the growth in public infrastructure in the Sydney’s western corridor, and in particular focusing on Parramatta as the second CBD, Australian regional director of Shokai Group, Jason Gao said he’s confident in the Granville Place development.
“I am very happy with the result given the current market conditions compared to that of two years ago,” Gao said.
The development will include three residential towers with development approval for 618 apartments, large scale retail and commercial space, public parking, as well as a public park and a residents-only podium roof garden.
Shokai Ausbao is also the developer and owner of the new Crowne Plaza hotel in Sydney.