Foreign buyers dominate Sydney development sites
Two-thirds of the $100 million-plus sales of development land in Sydney were made to offshore buyers or local developers with overseas backing, according to a new analysis by Charter Keck Cramer.
Since 2014, 50 Sydney residential development sites have sold for more than $100 million each, totalling $9.4 billion in what the property advisory deemed the “mega site” phenomenon.
National director Bennett Wulff says of the 33 sites acquired by foreign entities, most were China-based, with additional purchases by Japanese or Singaporean interests.
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Wulff says Sydney’s buoyant market conditions are due to increased overseas investor activity, low interest rates and state and local government pro-development planning changes.
“Research by Charter indicates that 40 of the 50 mega sites purchased had recently been rezoned and/or granted greater development controls,” the analysis says.
Despite the development and building completions, Sydney remained undersupplied, with strong population growth forecasts
“Re-zoning of these mega sites is enabling new residential supply through urban renewal and gentrification of former industrial, commercial and low density residential locations, or extension to fringe suburban areas into previously rural locations.”
Sydney-based developers Romeciti this week announced they had bought a 1ha site on Waterloo Rd at Macquarie Park, in the city’s northwest, understood to be for about $100 million.
The Charter Keck Cramer report says Sydney’s booming residential market, up more than 40% in three years, has coincided with record levels of planned infrastructure spending, notably for transport.
Wulff says the despite the development and building completions, Sydney remained undersupplied, with strong population growth forecasts.
Over the same period, there were seven $1 million-plus sales in Melbourne and none in Brisbane.
This article originally appeared on www.theaustralian.com.au/property.