There may be talk of an apartment oversupply in Sydney, but that hub bub didn’t stop one developer from dropping almost $20 million on just four houses in Lane Cove North.
A residential development site of close to 400sq m near the popular Lane Cove village on Sydney’s lower north shore has fetched $19.75 million.
The sale, which was landed by Ray White Commercial and CBRE agencies, is proof that developers in some patches of the NSW capital show no signs of slowing down.
“There does seem to be talk of an oversupply, that’s the general consensus at the moment, but that’s just not the case in these areas of Sydney where there are lots of amenities and good access to the CBD,” said Scott Timbrell of Ray White Commercial.
Sold by developers to developers, the sale of the four residences on 84-90 Gordon Cres, Lane Cove North took place after months of negotiations where separate sites of 1119sq m, 971sq m, 917sqm and 785sq m were amalgamated into one developer-friendly block.
According to Jeff Moxham of Ray White Commercial the purchaser Apex Property International is preparing to submit a development application to council in the hopes of acquiring approval for 85 apartments on the lot.
“The sale of this site is another reminder to a supposedly cautious market that demand remains strong for development sites throughout Sydney,” Mr Moxham said.
“It also indicates that developers are still prepared to pay a strong market price for A-class developments,” he said.
In Lane Cove North the current median house price, according to realestate.com.au, is $1.73 million.
The sale price of $19.75 million equates to a rate of $5208 per sq m of land, or a whopping $4.9375 million a house.
“It sold at what is market value for developers at the moment,” Mr Timbrell said.
“It’s a very, very desirable location for developers because it’s highly sought after by downsizers and international investors,” Mr Timbrell said.
[SOURCE :-news]
