Stockland dumps offices for apartment towers as residential boom looms
Artists impression of Stockland’s Affinity Place project in North Sydney
Property developer Stockland is weighing up a major push into apartments on Sydney’s north shore, seeking to drop its plans for North Sydney’s tallest office building and replace it with a luxury unit project.
Although the company’s hopes of being fast-tracked by NSW’s Housing Development Authority were dashed, its move comes amid a wave of such proposals in the area from developers ranging from Aqualand, Asian-backed Freecity and even financial services giant Zurich.
The listed Stockland went to the HDA seeking permission to convert the flagship Affinity Place office project into apartments. Despite the switch being rejected, the company is continuing to assess options for the site, particularly as large office projects remain tough to get off the ground.
The property heavyweight had tried to find a capital partner on its planned $1.5bn office tower in North Sydney in 2023. But it did not finder a taker.
Stockland’s site at 110-122 Walker Street is one of the best in the area, and the development is still slated to become North Sydney’s tallest tower. The office complex was to span 59,000sq m of office and retail space. But the views of Sydney Harbour across to the CBD could make it far more lucrative as a residential project.
The company has signalled that it will look to push further into residential, across areas including traditional housing, estates, land lease and build-to-rent. But the focus of the North Sydney proposal was traditional apartments.
Artists impression of Stockland’s Affinity Place project in North Sydney
Stockland proposed 500 apartments including 5 per cent affordable housing, with some commercial floor area in a 61-storey building. But the HDA did not recommend this project and recommended Stockland be advised there was alternative approval pathways in the planning system for development on the site.
A Stockland spokeswoman confirmed the company had applied to the NSW government’s HDA for a mixed-use scheme at Affinity Place. “The proposal was not approved to be progressed under a State Significant Development planning pathway,” she said.
“Stockland is supportive of state-led planning pathways that fast-track the delivery of much needed housing and streamline the assessment process.
“We regularly review these opportunities in line with our portfolio. The company will keep assessing development options for the site.”
Stockland is advancing plans for another nearby apartment project at 601 Pacific Highway in St Leonards. That development will rise 52 storeys and have the capacity to deliver more than 500 residential apartments.
It will have a five-storey basement for parking, podium levels for retail and commercial and residential from level six to level 52. There will be about 507 apartments with a mix of sizes.
The site is occupied by the 14-storey IBM building, comprising retail and commercial office tenancies and four basement parking levels. The project is billed as making a major contribution towards the NSW government’s target for 47,800 new high-end mid-rise homes within identified transport hubs over the next 15 years.
