Samma Place, Ivanhoe apartments draw Sydney investors
Melbourne tops Sydney for smart property investment according to developers Samma Property Group, who has seen a large number of sales of its Ivanhoe project, Samma Place, come from Sydney buyers looking for strong value for money in well-known Melbourne areas.
Having launched to the market late last year, construction on the project is now underway, with an number snapped up by Sydneysiders.
Samma highlighted Ivanhoe’s convenient location, affordability and accessibility – both of which are becoming increasingly hard to come by in Sydney – as a main driver for the interest in the project.
The sales results come as Melbourne’s inner suburbs’ apartment market continues to defy the wider housing slowdown, with the median apartment price in East Melbourne rising by 6.2 per cent in the first quarter, according to CoreLogic.
Samma Property Group’s Head of Project Sales, Christopher Rice, said the innovative project has been well-received by buyers, with the team thrilled with the interstate response.
“Our buyers to date have expressed that they are attracted to an affordable price point, in a growth corridor less than 10 kilometres from the CBD,” said Rice.
“Strong rental returns, and the employment hub of the Austin Health Precinct are key for capital growth in the future increasing yields.”
“In Sydney, you need to travel 40 kilometres from the CBD to find this sort of affordability, and you don’t get the added benefit of an established and affluent suburb,” he added.
CoreLogic data indicates the median unit price in Sydney is $830,534, while in Melbourne it’s just $370,255, and as interest rates continue to rise, apartments will continue to become a more attractive alternative, Rice noted.
Samma Place apartments have been designed to meet Better Apartment Design Standards (BADS) and reach a 4-Star Green rating.
In addition to the apartments, Samma Place Linden, the first stage of the development, will also be home to nearly 1000 sqm of commercial spaces, with subsequent stages set to include a grocery store, a café, and office space.
Investfox Property Group Director and Sales Agent for Samma Place, Vikrant Malik said they had seen a rapid rise in interest in Melbourne from Sydney buyers, with the city recently being crowned Australia’s most liveable city yet again, along with the growth expected over the next four to five years.
“Ivanhoe, specifically, is a great place to invest because it’s already an established suburb; it’s on the Eastern side, schools are great, including Ivanhoe Grammar which is one of the best schools in the locality, La Trobe University is nearby, as is the medical precinct. The Government is planning to spend $5 billion on infrastructure in this area, and there are also plenty of employment opportunities. As an investor, you look for all these things in one place and Ivanhoe has it all.
“What’s more, the gap between apartment and house prices is huge in Ivanhoe, so I see a lot of potential and a great opportunity to invest in apartments there. Eventually, the gap will close, but it's unlikely that will happen by a reduction in house prices, so apartment prices will only continue to rise, making investing now a very lucrative opportunity.”
Samma Property Group recently announced the acquisition of an expansive standalone site in Melbourne’s Docklands, along the Yarra’s edge.
Construction on Samma Place Linden has successfully continued on-schedule, with completion slated for the early stages of 2023.
