Rare Stanmore development site presents unrivalled opportunity amidst housing crisis
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The Cyprus Community Club has announced the sale of a highly sought-after mixed-use/residential development site at 58-76 Stanmore Road, just 6km south-west of the Sydney CBD, as the NSW Government continues its planning reforms to address the housing supply crisis.
The expansive 9,129 sqm site, with a potential Gross Floor Area (GFA) of 16,202 sqm, is expected to attract a wide range of buyers, including residential developers, student accommodation providers, affordable housing advocates, build-to-rent operators, private hospitals, and education institutions.
Tom Barnier, Kieran Tsipidis, Tim Cassidy, and Fab Dalfonso of Cushman & Wakefield are managing the sale of the property, which boasts three street frontages and the potential for up to 190 apartments, with an anticipated end-project value exceeding $165 million.
“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,” said Mr Barnier.
According to CoreLogic RP Data, Stanmore’s median prices for existing apartments and houses stand at $840,000 and $2,190,000, respectively, indicating strong demand for residential properties in the area.
The 61 per cent difference in price is expected to drive greater adoption of apartment living, further fuelling the rise in apartment values.
NSW Population Projections for 2022 suggest that the state will need to accommodate an additional 85,000 people annually for the next 20 years, with Greater Sydney’s population expected to reach 6.1 million by 2041, necessitating an additional 904,000 homes over the next two decades.
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Mr Tsipidis noted, “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 declining value of the Australian dollar has made tuition fees and living expenses more accessible for international students, enhancing Australia’s appeal as an education destination, with nine Australian universities ranking in the global top 100.
“There are positive market conditions for interested parties to leverage off the government’s recent reforms, which ultimately reflects the demand in the market,” said Mr Tsipidis.
Mr Barnier added, “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.”
Recent acquisitions in Sydney’s inner west precinct, such as the $300 million investment in Kings Bay, Five Dock, and Dasco’s $128 million acquisition in Waterloo, highlight the market’s depth and investor confidence in these prime locations.