The inner-city Sydney suburb of Alexandria has been predominantly industrial for a significant portion of its existence, but with such high demand for CBD-adjacent residential property, many of the warehouses in such suburbs are being redesigned for alternative purposes.
“Alexandria, which was formerly an industrial precinct, has undergone significant gentrification in recent years,” stated Knight Frank’s Demi Carigliano. “[There’s] an emphasis on higher density commercial and residential repositioning, making this one of Sydney’s most dynamic and desirable property markets.”
We recently highlighted an office warehouse conversion from just a few suburbs over, but on this occasion, it’s the allure of residential development that has prompted a frenzy of activity from investors.
After 127 individual enquiries, Knight Frank’s Anthony Pirrottina, Demi Carigliano and Dominic Ong have arranged an unconditional sale for $15.25 million with a short-term settlement for 59-99 Belmont Street, Alexandria. The site, currently occupied by a flexible commercial warehouse, was marketed with DA approval for a four-storey conversion that would see the construction of seven boutique townhouses/terraces, and 16 oversized residential apartments targeted to the owner occupier and/or downsizer market.
“Despite the current commentary around rising interest rates and how it may affect residential buyers, developers are confident in investing in well-located development sites,” noted Mr. Pirrottina, who has seen residential development sites with potential for boutique being priced at record rates.
“There will always be buyer demand for high-quality residential property close to the city, and with our population only growing, demand is only going to get stronger once interest rates stabilise.”
The site, sold to a local developer by the vendor Aqualand, is being sold with an approval that provides for the façade to be retained, so as to add character and charm, with a single-level basement car park and generous communal facilities to be added additionally.
59-99 Belmont Street, Alexandria NSW 2015 - Artist impression of development interior
Lying in close proximity to Sydney’s bustling CBD, the site is not lacking in local amenity. As Mr. Carigliano has touched on, the site provides access to some of Sydney’s finest hospitality endeavours, and this is set to enhance the value of the planned townhouses and apartments.
“As a result of widespread redevelopment, Alexandria has become renowned for its emerging food and beverage scene, and public transport in the area is excellent... this site is set in a highly desirable location in a leafy street, within a quiet cul-de-sac just a stones’ throw from Alexandria Park.”
Much of the narrative of the past few years has been oriented around the notion that the population is shifting away from the high-density metropolitan cities like Sydney and Melbourne, but this sale demonstrates that this shift is not as all-encompassing as some are suggesting. Even as a certain demographic are starting to move towards the country’s regions, well-constructed, boutique residential property in inner-city suburbs like Alexandria remain incredibly desirable to much of the population. The fact that this sale represents the highest sale $/rate per sqm on gross floor area for a residential development site in South Sydney seems to confirm this idea.
