FEATURE I APARTMENT LIVING
Home Sweet Apartment Following an unprecedented level of development activity, corresponding increases in property growth have seen purchasers who bought off the plan locally enjoy significant capital growth. By Jocelyn Biddle.
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ince 2012, just over 2300 new apartments have been completed in Lane Cove, with a further 500 currently in planning stage. This doesn’t include the St Leonard precinct, which has contributed an additional 1500 apartments. Combined, 4377 apartments have been approved in the Lane Cove LGA. This exceeds the initial targets set by the NSW Government’s Draft Metropolitan Plan released in 2013, which required the Lane Cove LGA to increase its housing density by an additional 3900 dwellings before 2031. This target increased when the Greater Sydney Commission released a draft District Plan in 2016, requiring an additional 1900 dwellings in the Lane Cove LGA over the next five years to work towards accommodating an overall projected population increase of 14,900 people by 2036. According to Lane Cove Council General Manager Craig Wrightson, Council is already well ahead of growth targets. “We’ve done a lot of heavy lifting and met initial targets within a short space of time. We’ve now exhausted all key areas for development. The remaining area where Council is planning for growth is the St Leonards South Precinct. We don’t have any further capacity beyond that.” On this basis, Council has requested that the targets in the latest plan be revised to acknowledge the limited capacity for any additional dwellings. The development that has taken place since 2012 will ultimately deliver approximately $60 million in revenue through section 94 development contributions paid to Council (based on $13,500 per unit). Craig confirms that regardless of what happens with potential Council amalgamation, this revenue (which has already largely been allocated) will stay in the area for local projects. The Rosenthal Avenue development is just one beneficiary of this influx of funds, together with other infrastructure projects such as the Blackman 4 I THE VILLAGE OBSERVER I NO. 263 I JUNE 2017
Park Synthetic Fields, Aquatic Centre upgrades, Hughes Park and the Little Street Community Hub and carpark.
Strong capital gain
Loving the lifestyle Randi Lapham bought an apartment off the plan in the Aurora block of units in Finlayson Street in September 2011. With expectations of moving in by December 2013, this was delayed after the developer declared bankruptcy, leading to significant delays in construction. Rather than December 2013, the units were not completed until May 2015 - 17 months later than expected. Two years in, Randi is very happy with her new home and her transition to apartment living from a large house in the Hills District. Aurora has 56 units in the complex, 20 of which are rented. Residents include a mix of young families, downsizers and single professionals. “Living here is fantastic. I don’t know of any suburb that ticks as many boxes as Lane Cove. I’m in easy walking distance to shops and cafes; I can catch the bus into town; if I need to take a cab home from the city it’s affordable; and each time I walk up to the Plaza I’m bound to see someone I know.”
Purchasers into the new apartment developments locally have enjoyed substantial capital gain, with the median value for units in Lane Cove now sitting at $863 thousand (compared to $2.18 million for houses). ‘Aurora’ in Finlayson Street was one of the first sites to be developed back in 2012. At the time, off the plan sales were from $550 thousand for a 1 bedroom; $830-870 thousand for a 2 bedroom and $1.15-1.5 million for a three bedroom or penthouse. Alex Banning, Sales Executive with Ray White Lane Cove was a listing agent for this development and says that it pioneered off the plan sales in the village. “These were considered to be big prices back then.” The last sale in the block traded twelve months ago, which was a 2-bedroom apartment that sold for $1.1 million, realising an almost 40% increase in four years. Similar capital gains have been experienced with the ‘Botanic’ apartments in Finlayson Street, which sold off the plan three years ago. Between 2013-2014, 1 bedroom units started from $500 thousand through to a top floor penthouse which achieved $1.65 million. Recent sales show an average 40% increase. For example, another penthouse that was purchased for $1.357 million in 2014 resold for $1.85 million in 2016, whereas a 1-bedder that was purchased off the plan for $555 thousand in 2014 recently sold for $770 thousand. Alex says that 80% of apartment buyers already have an association with Lane Cove and really love it here. A large percentage of buyers in the three-bedroom market are locals looking to downsize. “We’re certainly not experiencing an oversupply with the new apartments that
