Kingsford landowners set to cash in on new infrastructure
Property owners around the Kingsford light rail, set to open next March, are banding together to capitalise on proposed rezoning where building heights are set to increase to 18 storeys high.
Some owners who purchased rundown apartment blocks nearby only six years ago are likely to more than double their money.
But the purchasers of the sites may be able to make even more from the student housing cash-cow.
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As Randwick Council prepares to put their Kensington to Kingsford (K2K) Planning Stategy — which include lifting the current 30m and 40m building height restriction to 57m — to public exhibition, agents selling an amalgamated Rainbow St site have been swamped with inquiry and up to $15 million is expected.
The Rainbow St amalgamated blocks are in a prime location.
“We’ve had 32 inquiries in three days from Sydney developers and also some for China,” says Ryan Greenhalgh of Ralton Property Group, who is selling 16-18 Rainbow St on behalf two owners.
CoreLogic data shows one of the land owners had paid just $3,168,000 in 2013 while the other had paid an unknown amount in the 1980s.
But the agents say that with this site being so close to the long-awaited light rail (75 metres walking distance) and the University of NSW, the 848 sqm block is ideal as student housing.
There are currently just a dozen 1970s era apartments — six on 16 Rainbow St and six at 18 Rainbow St — on the blocks.
But subject to council approval, it’s estimated 180-bed student accommodation with no parking could be built there.
The Rainbow St amalgamated blocks (above and below) are in a prime location.
Ralton points to last year’s Savills report on Australian Student Accommodation that finds: “Sydney continues to be the most attractive Australian market for
investment into the student accommodation sector.”
The report says:“According to UNESCO statistics, Australia is set to overtake the UK as the second most popular destination for international students.”
The US is number one with Britain currently number two.
Artists impressions of how Anzac Parade near Meeks St may look.
But the report says that Brexit is expected make Britain less popular for European students because they will have to pay international student fees instead of UK student fees.
They’ll also have to pay up front for their study and tuition loans will no longer available to them.
And with 180 beds, the new owners could expect a healthy yield from rents.
The Ralton agents say rent for beds in Kingsford for private student accommodation is, on average, $450 a week.
This article from the Southern Courier originally appeared as “Kingsford land owners band together to capitalise on light rail and student housing demand”.
