Return of the receivership sale in Sydney?

Alan Walker and Andre Lakomy of Cor Cordis, in their power as receivers and managers, have appointed Ray White Commercial NSW – Western Sydney’s Managing Director Peter Vines, as well as Victor Sheu and Joseph Assaf, to sell an 11,550sq m* parcel of land at 44-46 Maple Road in Casula.

The property is zoned R2 and has a DA approval for 29 subdivision lots and the sale comes due to a slowdown in the residential housing market across Sydney.

Prices reached their peak in late 2016 and 2017 according to Ray White Head of Research Vanessa Rader, before prices moderated as stock entered the market and financing became more difficult for buyers, notably the investor market.

According to RP Data, the property was purchased in April 2015 for $5.3M, by Fortune Construction and Design Pty Ltd.

Mr Vines expected there would be strong interest given the size of the property, the infill nature, and the fact that the property would be sold with a DA approval.

“I believe there may be more sales of this nature coming in the residential development space outside core markets,” Mr Vines said.

“This is because of high interest levels on land that’s not producing a return, they’re often struggling to get DA approvals for, and because there’s a lack of pre-sale commitments.

“People have paid large sums of money for some of these projects and unfortunately the retail value of the land has gone backwards which makes development unfeasible. “

The property will be sold by auction on site on Wednesday 13 November 2019 at 10.30am (AEDT) and is expected to sell above $4M.