South Sydney is set to become one of the hottest markets in NSW with the region garnering over $500 million in sales of residential development sites throughout 2014.
Adding to the growth in South Sydney are major players such as Goodman Group who have numerous sites around the country adding up to $500 million.
According to the Sydney Morning Herald, the group’s South Sydney activity includes selling assets to Meriton and recently buying a $14 million site for residential development in Sir Joseph Banks Street, Botany.
Another South Sydney residential development site has sold for $8.2 million to local company Casumo Constructions, highlighting the ongoing attraction for Australian and overseas investors drawn to the area.
JLL's Head of South Sydney, Blair Peterken, and Director of Industrial for South Sydney, Keegan Ridings, told the Sydney Morning Herald the South Sydney residential development market is seeing even more strength moving into 2015.
"We already have another three or four campaigns kicking off in South Sydney this year. By all accounts, we haven't seen a slowdown. The market is still extremely hot. It is getting even busier – there seems to be more buyers and more sellers than ever before,” Mr Peterken said.
"We received a huge amount of interest for this site, with 170 enquiries and 13 offers to purchase at the close of the expressions of interest (EOI) stage. Half of the 13 offers to purchase were local investors and half were Chinese buyers.
According to Mr Ridings, there were two key features driving significant interest in the property.
"The location of the property was well-received by potential buyers as it is directly opposite Sydney Park with the potential for great scenic views. Secondly, the close proximity of the railway line with direct access to the Sydney CBD was a major drawcard," Mr Ridings said.