Sydney’s North West is emerging as one of the most in-demand regions for developers, underpinned by the strong growth predicted in the area over the medium to long-term.
This trend is becoming particularly prevalent in Box Hill, where CBRE has recently negotiated a series of development site sales and has a further 17 acres of development land both on and off-market.
Alex Ugarte of CBRE’s Western Sydney Capital Markets team said developer demand for the Box Hill area has been exceptionally strong since the rezoning in 2013, which released over 950 hectares of land for urban development.
“Despite the high-supply and softening market conditions currently experienced in the Box Hill region, developers continue to have confidence in the long-term potential of the market.”
Recent lifestyle and infrastructure projects in the North West, including ‘The Gables’ residential community and Toplace’s proposed ‘Box Hill Town Centre’, which consists of 682 residential apartments over nine buildings, demonstrate the confidence some of Western Sydney’s largest developers have in the area.
“There is still strong demand in Box Hill however developers are now targeting more strategic acquisitions, securing sites that offer prime positioning and favorable R2 Low Density and R3 Medium Density zoning,” said Mr Ugarte.
Demonstrating the increased demand for Box Hill sites, 24 Nelson Road transacted for $3.2million in October 2015, equating to a rate of $1.6m per acre. This represented a significant value increase from October 2013, when CBRE transacted a 3.87 acre site at 16 Box Road for $1.84 million, representing a rate of $475,710 per acre.
“There remains a high amount of faith in subdivision development stock, as land subdivisions traditionally sell well off the plan in all market conditions, making it a safer investment than apartment stock,” said Mr Ugarte.
“Homebuilder groups continue to target the area and we predict demand to remain strong over the coming months.”