14 minute read
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.
Since 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.
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 Park Synthetic Fields, Aquatic Centre upgrades, Hughes Park and the Little Street Community Hub and carpark.
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.”
Strong capital gain
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.
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
The Sevana apartments in Centennial Avenue.
have been built here. Rather there is a fundamental problem in that there isn’t enough properties to cater to demand.”
Sought after area
George Benlian is the Director of Sales & Acquisitions at Hyecorp, which has completed four developments in Lane Cove including Eleeza, Lora, Sevana and Ariana.
Collectively, these developments comprise 392 apartments. In addition, Hyecorp is currently marketing ‘Eva’, a development which will have 104 apartments with construction scheduled to commence in August 2017.
“In 2011 when the first new developments came onto the market in Lane Cove, it wasn’t as well known. The area had all the attributes, so we helped to create demand.
George says that there has been a 40-60% increase in values across their apartments since 2012, with the larger apartments attracting the strongest growth.
Listening to the market
Since releasing its first development to market back in 2011, Hyecorp has adapted the design of its developments to cater to changing customer demand.
“Six years ago, 3 bed apartments were not as popular as buyers in that market could still afford to buy either a house or townhouse. However as prices continue to increase, larger apartments are increasingly sought after by both younger buyers who can no longer afford a house, as well as downsizers who are seeking a larger sized apartment.”
Indicative of these increasing prices was a record off the plan price of $3.15 million that was recently achieved for a 3-bedroom penthouse apartment within Hyecorp’s new Eva development.
ALEX BANNING,
RAY WHITE LANE COVE
Family friendly living
Moving into the Sevana apartments in Centennial Avenue has been a positive experience for Leila Salehi and her family.
Leila and her husband live in a 2-bedroom unit with their young sons – 3 year old Daniel and 10 month old Davin.
“They are beautiful apartments. Compared to living in a house, I feel very safe here and it is low maintenance. Our apartment has a very big balcony where the kids can play and there’s plenty of families around.”
Leila says that they also appreciate the facilities within the development, including indoor gym, movie theatre and swimming pool.
Sevana, completed by Hyecorp, is one of the larger developments in Lane Cove, with 213 apartments. According to George Benlian, the ability to spread the running costs of extra services becomes more reasonable when there is 100 plus apartments within a development.
These additional facilities help to foster the community feel within the development and include an onsite café.
Maintaining design integrity
From a design perspective, architect and local resident Jon Johanssen believes that there has been lost opportunity with some of the local developments, both at early pre-DA stages and in construction.
“In some instances, better consultation during the approval process could have resulted in better design outcomes. For
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47 Carlotta Street Greenwich 47 Carlotta Street Greenwich SOLD AT AUCTION SOLD AT AUCTION 32 Northwood Road Lane Cove RECORD SALE on River Road 7 Crowther Avenue Greenwich STREET RECORD 21 Wallace Street Willoughby SUBURB RECORD IN 2016 12 Anglo Road Greenwich SOLD OFF MARKET
23 Mitchell Street Greenwich SOLD AT AUCTION 36 Crowther Avenue Greenwich SOLD PRIOR TO AUCTION 59 Stafford Road Artarmon STREET RECORD 17 Panorama Road Lane Cove SOLD PRIOR TO AUCTION 3 Ronald Avenue Greenwich SOLD AT AUCTION
128 Greenwich Road Greenwich SUBURB RECORD FOR A SEMI 34 Portview Road Greenwich SOLD OFF MARKET STREET RECORD 2/188 Blues Point Road McMahons Point. SOLD AT AUCTION 10 Fleming Street Northwood SOLD IN 10 DAYS 8 Mooney Street Lane Cove SOLD AT AUCTION
23 Mitchell Street Greenwich
SOLD PRIOR TO AUCTION
7 Crowther Avenue Greenwich STREET RECORD 59 Sta ord Road Artarmon STREET RECORD 2/188 Blues Point Road Greenwich SOLD AT AUCTION
21 Wallace Street Willoughby SUBURB RECORD IN 2016 17 Panorama Road Lane Cove SOLD PRIOR TO AUCTION 10 Fleming Street Northwood SOLD IN 10 DAYS
12 Anglo Road Greenwich SOLD OFF MARKET 3 Ronald Avenue Greenwich
SOLD AT AUCTION 8 Mooney Street Lane Cove
SOLD AT AUCTION
To discuss your individual real estate needs or to know the new value of your property, call Bernadette Hayes 0431 558 505.
'Aurora' in Finlayson Street.
Recent sales show an average 40% increase between off the plan and current values.
example, when hot water units, airconditioning units and washing lines are located on balconies without screening, it can make a big difference to the overall look and feel of the end product.”
Jon says that there should be a requirement for developers to retain the original architect through to completion to prevent shortcuts during the building process that can often compromise the final result.
“Changes that are made during construction as developers seek to maximise profits can compromise the design outcome.
George Benlian, Hyecorp.
Jon Johanssen, architect and local resident.
Craig Wrightson, General Manager, Lane Cove Council.
SOLD
Auction success
A one bedroom apartment in the Sevana development featuring a large wraparound terrace with district views recently achieved a record price. After working in Hong Kong for a couple of years, the purchaser was keen to find an apartment in Sydney that provided easy access to the city, shops and cafes.
After 12 months of searching, the purchaser successfully bid at auction, securing the property for $810 thousand.
“Ideally, I would have liked a 2 bedder, but I had to compromise as prices became too high. In the end, I had to go above today’s market value to secure my property, but for me it’s a long-term hold.”
To avoid this situation, Jon says that the appointment of a design review panel can assist, and any late changes should be approved by the panel to maintain the integrity of the building.
Capital growth and lifestyle benefits
Six years in, Lane Cove has changed dramatically, with the new housing stock bringing thousands of new residents to the area.
For purchasers, their investment has paid handsome dividends. Solid capital gain by virtue of the buoyant real estate market, together with lifestyle benefits offered by Lane Cove’s local facilities and proximity to the city is showing that apartment living is proving to be a move for the better.
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