Chippendale corner site tipped for local and foreign buyer showdown

A Sydney city fringe property with future development potential has been listed.

The mixed-use freehold corner site at 18 City Road, Chippendale has a two level building on a 259 square metre site.

It has B4 zoning allowing mixed-use and student accommodation development, potential to strata subdivide (STCA) and dual street frontage.

Savill’s Tom Tuxworth, David Hickey, and Jacey Lee are marketing the property.

Hickey said the investment offers a diverse tenant mix with strong annual income.

“This is a prominent, highly sought-after and strategic location within the booming city fringe and fast developing cosmopolitan suburb of Chippendale,” said Hickey.

“We expect interest from owner occupiers, local and offshore investors, student accommodation developers, mixed-use developers and value add investors.”

According to Savills Australia, over the last 18 months, five out of 10 freehold transactions in the Sydney city fringe with a value of $10 million-plus were sold to local buyers.

Tuxworth said competition between local and offshore, in particular Asian investors and developers will be fierce.

“Throughout 2018 many owners sold their assets for a number of reasons including strong rental demand and record capital growth being achieved,” he said.

“The increase in values can be attributed to, in part, record low interest rates and a surplus of global capital flowing into Sydney over the last few years.

“With stock supply reduced in 2018, demand and competition was and continues to intensify which resulted in record-breaking prices in the city fringe.

“However, in the New Year we have seen a resurgence in Asian capital and active offshore buyers looking to secure prime investment stock.”