Townhouse site sales on the rise in Sydney

Townhouse site sales on the rise in Sydney

sales
by Sasha Karen 0 comments

The demand for townhouses is on the rise as investors and developers look to capitalise on property amid the NSW government’s attempts to develop the “missing middle”.

Over the past nine months, CBRE’s manager for metropolitan investment, Xavier Rahme, has noticed investor demand shifting away from apartment developments to sites that support townhouse projects.

“The recent slowdown in growth of the residential unit market has spiked developer interest in townhouse development opportunities,” Mr Rahme said.

“Interest remains strong in apartment sites in blue chip locations within 10-15km of the Sydney CBD and close proximity to train stations.”

With the NSW government urging designers and builders to focus on the “missing middle”, CBRE has noticed a rise in interest in townhouses.

“Sydney’s housing sector is significantly undersupplied in the middle market, which is driving investors and developers to secure parcels that can capitalise on this untapped area of the market,” Mr Rahme said.

“The NSW government’s recently launched missing middle design competition highlights the emphasis on this important sector of the market, with a shift away from apartments to medium density development.”

The demand for townhouses has seen a rise in sales for CBRE, which is spending $48 million on the development of townhouses across metropolitan Sydney. This includes development approval in Lindfield for 16 townhouses, in Burwood for 10 townhouses, in Turramurra for 15 townhouses, and in North Rocks for 50 townhouses.

“These recent townhouse development site sales demonstrate the strength in demand from developers for this type of stock, which is driven by the vigorous demand for ‘missing middle’ housing across Sydney,” Mr Rahme said.

“Market feedback has indicated that banks and financial institutions are more enticed to lend on lower risk assets including townhouse developments, where pre-sales rates are particularly buoyant.”

Townhouse site sales on the rise in Sydney
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Why David is holding himself accountable for taking his career to the next level

David Walker says he’s holding himself accountable – win or lose, the overall success of his real estate career rests entirely on the e...

View all podcasts

Does blogging help in growing your personal brand?

Yes
No
Depends on who is writing it
Depends on who is reading it
Do you have an industry update?