photo: 58-76 Stanmore Rd aerial marked
As the State Government continues a series of planning reforms amidst a housing supply crisis, a rare opportunity has emerged in the heart of Stanmore, with the announcement of the sale of a coveted mixed-use/residential development site located at 58-76 Stanmore Road, just 6kms south west of the Sydney CBD.
Owned by The Cyprus Community Club, this expansive 9,140 sqm* site is poised to attract a diverse pool of buyers, ranging from residential developers to student accommodation providers, affordable housing advocates, build-to-rent operators, private hospitals, and education institutions.
Boasting three street frontages, the site presents an unparalleled opportunity for developers to capitalise on its premium location and proximity to a wealth of amenities.
For sale through Tom Barnier, Kieran Tsipidis, Tim Cassidy, and Fab Dalfonso of Cushman & Wakefield, the site has the potential to satisfy the alarming lack of residential stock in the inner west, where the supply has remained stagnant for 3-8 years.
Commenting on the significance of the site, Tom Barnier remarked, "This is undoubtedly the best development site in the inner city of Sydney. The scarcity of residential stock in NSW has created immense demand for opportunities like this."
According to data from CoreLogic RP Data, the location of the site in Stanmore is particularly attractive, with median prices for existing apartments reaching $840,000, while houses command an average of $2,190,000—an indication of the strong demand for residential properties in the area. It is anticipated there will be a greater adoption for apartment living due to the 61% difference in price, further fueling the rise in apartment values (new two bedroom apartments in Marrickville - 1.6km from Stanmore are now achieving $1,300,000).
In line with the 2022 NSW Population Projections, NSW will need to house an additional 85,000 people every year for the next 20 years. By 2041, the population is expected to reach 6.1 million in greater Sydney, resulting in an additional 904,000 homes over the next 20 years to house this growing population.
Kieran Tsipidis added, "We're witnessing a resurgence of offshore capital flowing back into Australia, particularly in the student accommodation sector, which is experiencing a significant uptick in demand."
The decline in the value of the Australian dollar has rendered tuition fees more accessible for potential international students. Moreover, the decreased value of the Australian dollar has affected accommodation and living expenses. With a softer currency in a global setting, relative expenses for housing, meals, and daily necessities become more advantageous, bolstering the appeal for international students.
This increased affordability significantly contributes to drawing students from around the globe to pursue educational opportunities in Australia, with 9 Australian universities ranking in the global top 100.
“There are positive market conditions for interested parties to leverage off the governments recent reforms, which ultimately reflects the demand in the market” said Mr Tsipidis, with Mr Barnier adding, “The lack of medium and high density completions in recent years has exacerbated the affordability crisis, making this development site a highly sought-after investment opportunity”.
The recent acquisitions in Sydney's inner west precinct, particularly the $300 million investment in Kings Bay, Five Dock, and Dasco's $128 million acquisition in Waterloo, underscore the market's depth and investor confidence in these prime locations.
With their strategic positioning and potential for development, sites of scale in the inner west precinct have become highly coveted assets among investors seeking to capitalise on the area's growth and urban revitalisation.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
