THE experienced operators at Ray White Commercial NSW have just inked their sixth major Sydney residential development site deal in recent months, tallying up to $126 million in sales.
Ray White Commercial NSW director Jeff Moxham, along with fellow director and partner Matthew Ramsay, said each of these sites were acquired by experienced local builder developers which is an emerging theme following 4/5 years of dominance by new offshore investor developers.
The deals include two sites in Lane Cove (DA approved for over 100 units), plus a large DA approved site in Macquarie Park (over 100 units), plus a zoned site in Alexandria for over (100 units), and a large raw mixed-use site in Rouse Hill for 397 units.
The most recent deal was the sale of 57 Windsor Road, Norwest (formerly Baulkham Hills). The project called The Beaumont offered a DA approved development site for 28 townhouses with private courtyards.
Mr Moxham said the key ingredient in all six deals was agency experience, contacts and relationships.
“Responses to the marketing campaigns remained steady in each of these sales but it was our relationships and our experience in getting deals across the line which proved invaluable. As an agent you need to have been through one of these markets before to ensure successful navigation for your clients” he said.
“Our vendors’ investment in marketing and a robust sale process were also crucial factors in generating strong buyer participation levels.
“The importance of vendors demonstrating commitment to a sale process is more important than ever at present to ensure maximum buyer participation, buyers need to know a vendor is serious about selling.”
He said well-known local builders and developers who had access to capital and a strong track record of constructing and delivering projects in the Sydney market were the keenest buyers right now.
“New offshore developers are continuing to take a step back from the Sydney market, a trend we started to see last year”.
Mr Ramsay said local builder developers have seen that the market has normalised and are seeing this as a good opportunity.
“Interestingly, the sites we’ve sold recently have all been to well-known builder developers who are well capitalized and can see the opportunity in this challenging market,” he said.
“These groups aren’t entirely reliant on apartment pre-sales, and if apartments can’t be sold off the plan, construction can still commence and apartments will be offered for lease, therefore it’s a build-to-rent opportunity for local developers and residents.”
Ray White Commercial NSW sales:
594-598 Mowbray Rd and 5-7 Mindarie St, Lane Cove North
614 and 616 Mowbray Road and 23 Mindarie Street, Lane Cove North
57 Windsor Road, Norwest
9 Peach Tree Road, Macquarie Park (co-exclusive Savills)
45-47 Ralph Street and 634 Botany Road, Alexandria(co-exclusive Link Property Services)