ALAND see investor demand spike in Greater Sydney apartment projects
The Sydney developer ALAND has seen a flurry of sales at two of their Greater Western Sydney developments, as investors continue to look away from the regional areas and invest closer to the city.
ALAND's Greater Western Sydney projects Schofield Gardens in Schofields, near Kellyville, and their Liverpool development Hoxton, have seen a sharp increase in investor demand.
Data from My Housing Market found that area's such as Wollongong to the south of Sydney and Newcastle and Central Coast to the north see rental yields in the mid three percent range, when calculating the area's median property price and median rental price.
ALAND's Schofield Gardens development has investors seeing gross rental yields topping 4.7 per cent.
“What Sydney property investors don’t realise is that they can make much more money in their own backyard than they can in regional areas, while taking advantage of what will probably be much higher capital gains,” ALAND sales director Mark Bernberg said.
“Sydney’s western suburbs are ripe with investment opportunities and no shortage of rental demand.
"Investing in a freshly-built apartment saves many headaches as well, with next to no maintenance required for the first few years of its life.”
Schofield Gardens will home one-, two- and three-bedroom apartments on Grima Street, opposite Schofield's Woolworths and train station.
Prices at Schofield Gardens start from $450,000 for a one-bedroom apartment with parking. Two beds are priced from $550,000 and three-bedroom apartments from $699,000. Completion is slated for mid-2022.
The Schofields Precinct was rezoned by the NSW government in 2012 and new planning controls were put in place to allow for urban development, which the government said at the time would include nearly 3,000 new homes.
ALAND are also seeing investor demand creep back in to their Liverpool apartment tower The Hoxton.
The 32-level tower in the heart of Liverpool, again a short walk from the closest train station, will home 331 apartments.
One bedders in The Hoxton start from $480,000, two-bedroom apartments from $523,000 and three bedroom apartments from $677,000. ALAND also have a mid-2022 completion for The Hoxton.
In 2019, the NSW Government said that population growth for the Liverpool area was expected to increase 26 per cent over the next decade.
The increase in investors in Greater Sydney comes after Knight Frank Research Australian residential development review 2021 found that the Greater Sydney apartment pipeline is tipped to plunge by 2024 by nearly 50 per cent.
The 36,275 new apartment developments to be completed over the next three years are set to be well below the 67,925 recorded in the prior 2018-20 period.
