Ecospective Property have entered one of Sydney’s newest suburbs, Showground, with the purchase of a 1-hectare development site for $40 million.
Showground, sitting adjacent to the Castle Hill Showgrounds around 36 kilometres north-west of the Sydney CBD, is set to benefit from a new metro train station which will take commuters to the city centre in around 45 minutes.
The area has experienced a recent rezoning and as a result has drawn in multiple developers. This comes in the face of a downward trend for median house prices; investors are enticed by the districts future prospects.
The recently secured site encompasses around 9,634sqm and is an amalgamation of 11 different properties on Carrington Road in Castle Hill. The site retains plans to build a multi-stage project of about 300 apartments across several mid-rise buildings.
"Fundamentally we are very confident in the Sydney residential market," an Ecospective spokesperson said.
"With the opening of the Sydney Metro North West imminent, residents will very quickly realise how dramatically the Metro will upgrade transportation, improve retail, bring employment and provide better access to education."
The NSW Government has rezoned around 270-hectares of land around the new station in an effort to entice development. A new town centre is planned along with 5,000 new homes over the next 20 years.
The new zoning has instructed developers looking to take on the new apartments to build larger-sized dwellings.
Property advisory firm Charter Keck Cramer's Bennett Wulff has indicated that there will be no shortage of demand for the new homes. Figures released by the firm suggest that in order for Sydney to handle its projected population growth, the city will need 36,000 new dwellings each year until 2036.
Mr Wulff has said, however, that this is destined not to be achieved due to funding constrictions.
"Our research is indicating a decline in apartment completions to circa 23,700 in 2020.” Mr Wulff told The Australian Financial Review.
"Approximately 38% of the units comprised within this figure are not yet under construction nor underwritten by construction finance.
"This figure is therefore subject to downward revision should projects not achieve the necessary sales pre-commitments.
"Our current 2021 forecast is indicating a further reduction in completions. Looking ahead, should completions consistently fall short of implied dwelling demand, supply shortages will take effect quickly."
Colliers International's Guillaume Volz, Paul McGlynn and Zhenni Lu handled the sale of the Carrington Street property.