NSW Parramatta - Infrastructure and Developments thread

Discussion in 'Where to Buy' started by JTR, 16th May, 2019.

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  1. JTR

    JTR Well-Known Member

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  2. JTR

    JTR Well-Known Member

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    Lang Walker's $3.2b Parramatta Square project opens door to first tenants

    https://www.smh.com.au/business/com...ns-door-to-first-tenants-20191218-p53l36.html

    By Carolyn Cummins
    December 18, 2019 — 4.14pm

    Developer Lang Walker has thrown open the doors to Property NSW, the first tenants at Tower 4 of his $3.2 billion Parramatta Square project.

    The government agency will take out 65,000 square metres of the 40-storey site, known as 4 Parramatta Square, which is the first of four towers in the complex that will cover more than 240,000 sq m once completed.

    [​IMG]

    David Gallant, chief operating officer at Walker Corp, said the tower was designed for a "high performance workforce, with strong internal connections and an emphasis on the health, wellbeing and creativity of the staff".

    "Parramatta Square is quickly taking shape and the total project is now 80 per cent pre-leased, with over 180,000 sq m of high quality office space committed," Mr Gallant said.

    "The NSW Government has led the way in attracting other leading organisations in signing long-term leases in the project, which will open the way for Parramatta city to rival Sydney’s CBD in terms of amenity and high quality commercial space."

    4 Parramatta Square was constructed by Built and its joint venture partner Obayashi Corporation and designed by architects Johnson Pilton Walker (JPW).

    Despite the large amount of developments coming out of the ground, Parramatta has the lowest office vacancy rate in the country, with the rate for premium-grade space near zero.

    The NSW government, QBE Insurance, Deloitte, PwC and KPMG have all taken space in the satellite city and developers, including GPT and Lang Walker, are undertaking major office projects.


    In her latest report on the region, Ray White head of research Vanessa Rader said the Parramatta CBD was growing in favour due to its relative affordability to Sydney and that quality construction and CBD infrastructure improvements had led to attracting new occupiers and investors.

    "With no major supply completions being added to stock levels during this period, we’ve seen some subdued take-up in space this period also, recorded at just 923 sq m. Despite this little change, we did see vacancy further contract to just three per cent or 21,877 sq m," Ms Rader said.

    Colliers International's national director of reseach Anneke Thompson said Parramatta remains a two-tiered leasing market due to the shortage of quality and contiguous prime office space. Incentives have remained relatively low compared to other metropolitan markets due to the low vacancy.

    "Average A grade net face rents are now ranging from $520-$590 per sq m, per annum and for B Grade properties the net face rents range from $435-$510 per sq m pa," Ms Thompson said.

    In another deal, SC Capital Partners, on behalf of its SCORE+ Fund, has exchanged binding contracts to purchase 2 Wentworth Street, Parramatta for $105.3 million.

    Located within Parramatta’s central business district, the property comprises an A-Grade office tower in proximity to Parramatta Square, Parramatta Transport Interchange and Westfield Parramatta shopping centre.

    The tower is fully leased and houses predominantly government tenants, with an net lettable are of more than 10,000 sq m.

    [​IMG]

    Suchad Chiaranussati, chairman and founder of SC Capital Partners, said market fundamentals are anticipated to remain strong, supported by government plans to establish Parramatta as a "Priority Growth Area" earmarking more than $10 billion for public and private investments.

    "The Greater Parramatta area is also set to go from strength to strength, with expectations it will house more than 50 per cent of Sydney’s population within the next 20 years," Mr Chiaranussati said.
     
  3. JTR

    JTR Well-Known Member

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  4. What does the fox say

    What does the fox say Active Member

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    Hi Guys,

    I'm looking to purchase my first IP (budget is low 500's) and am weighing up between buying a 2bed unit in Nth Parramatta vs a 2bd Townhouse in Auburn. The total land size between the two options can vary up to 50sqm. I'm looking primarily for capital growth (so I can take out the equity and go again) and something that doesn't have too much holding costs (in the current interest climate, ideally close to neutral before tax considerations). For both options, I am looking at older style, maximum 10 units in a complex with an interior that has been kept well.

    My quick list of pros and cons for both are;

    Parramatta
    Pros
    - Very close to light rail line in Parramatta
    - City of the future
    - Long term, the unit could be knocked down and become high rise

    Cons
    - Can only afford a unit with minimal land size
    - Most units already R4, so the value has already been realised by someone else

    Auburn
    Pros
    - Better quality asset (Townhouse) with land component
    - more likely to be rezoned to R4 in the coming years (most townhouses are R3) which will increase the land value and allow me to cash in quicker.

    Cons
    - Area not as well regarded
    - May not benefit from the capital gains as much as Parramatta continues to develop into a a geniune 2nd CBD.
    - No major infrastructure changes planned

    Keen to get your thoughts as this is the Parra thread..
     
  5. JTR

    JTR Well-Known Member

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    Can't really advise, other than to say, your Pros for Parramatta are mostly facts whereas your pros for Auburn are generally speculative
     
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  6. Gockie

    Gockie Life is good ☺️ Premium Member

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    Mt Druitt area house?
     
  7. What does the fox say

    What does the fox say Active Member

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    Should I be worried about tenants? Also, I'm looking for something that can give me some decent equity in the next few years; Do you think Mt Druitt would be a longer term play? Considering that there's no infrastructure going in that area in the next 10 yrs?
     
  8. Gockie

    Gockie Life is good ☺️ Premium Member

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    @skater... can you share your thoughts re: Tenants?

    I personally think the land is of value, and there are trains in the area. You can easily get to Parramatta, Blacktown and the city via train, or go to Penrith.
     
  9. skater

    skater Well-Known Member

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    As you know, I['m pro Mt Druitt and the areas surrounding it.

    @Gockie is right, there's lots of trains to both Parramatta and Penrith. Remember Penrith is also slated as a 'city of the future'. You can get a house for the same price as a unit closer to Parramatta. Yes, you do need to be careful about tenant selection, but that goes for anywhere really. Just be sure you have a good, seasoned property manager.

    Some things you may not know about the area. There are plenty of good, normal people living in the area, both owning and renting. Not everyone is on Centrelink. Blacktown/Penrith have more sports/activites for people of all ages than other areas in Sydney. There will be plenty of future growth, due to the new airport.

    @What does the fox say, you say no new infrastructure? There's going to be an upgrade to Mamre Rd, which heads right to St Mary's. There's lots of new jobs being created at Eastern Creek, Erskine Park, and along Mamre Rd. Lots of jobs brings lots of people, which creates demand, which pushes up prices.

    Covid may cool things down for a while, not just here, but all over Sydney, but the area is changing. There are more & more first home owners buying into the area all the time, because it's the most afordable place in Sydney.
     
  10. Gockie

    Gockie Life is good ☺️ Premium Member

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    Yep, some of my colleagues bought their first homes and live in the area. And they are hard working, really good people. For people wanting to buy a home on a first home buyers budget, I think it ticks all the boxes. The main alternative is an apartment. But I'd go the house over the apartment as more and more apartments are being built at a rapid rate, the relative supply of freestanding homes available to someone on a FHB budget feels like it is drying up.... which can only put the prices up. You'd get more depreciation benefits on a newer apartment over an old house, but I think down the track the house will be much more valuable because land is relatively scarce (and people just keep building more apartments)

    My 2 cents only though.
     
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  11. skater

    skater Well-Known Member

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    I totally agree. We moved to Lethbridge Park, after loosing our home due to a failed Business. I credit where we are today, to the fact that we moved to somewhere that was very affordable, rather than purchasing a newer property in a more prestige area. We lived there for around 11 years, and invested heavily in the area.

    Moving to St Clair was the perfect upgrade for us. It is a nicer area, but the prices reflect that.
     
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  12. What does the fox say

    What does the fox say Active Member

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    I've had a quick look at some houses with decent land size in the Mt Druitt/St Mary's area in the 500k range and there's very little that is close to the train station and most houses are in a very worn condition. Sounds like to get a good quality property you need to start looking at the 600k range..
     
  13. JTR

    JTR Well-Known Member

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    Last edited: 27th Apr, 2020
  14. Gockie

    Gockie Life is good ☺️ Premium Member

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    That would be true, your choice and I'd only be happy with investing in something I was comfortable with. If it's out of your comfort zone, don't do it, you want your SANF (sleep at night factor). But stilll, I think land in Sydney is where it's at.
     
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  15. skater

    skater Well-Known Member

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    First one that came up:

    https://www.realestate.com.au/property-house-nsw-dharruk-133486558

    Looks pretty good to me. Walk to shops, longer walk to station, or there's plenty of busses. Private home, not an ex-housing commission.
     
  16. JTR

    JTR Well-Known Member

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  17. JTR

    JTR Well-Known Member

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    Ritzy ‘revitalisation’ of Parramatta CBD to create tens of thousands of jobs

    Plans for Parramatta’s new ritzy central business district will unlock more than 50,000 jobs while adding thousands of homes to Sydney’s west.

    Erin Lyons
    NCA NewsWire
    JULY 29, 2020 9:41AM

    Western Sydney is about to get a major makeover.

    Elaborate plans for Parramatta’s central business district have been unveiled and are set to create tens of thousands of jobs and at least 14,000 new homes.

    Planning and Public Spaces Minister Rob Stokes said the State Government had been working with the City of Parramatta Council to progress the plan that would eventually form Sydney’s “second CBD”.

    “The proposal will lay the foundation for planning changes to unlock 50,000 new jobs, 14,000 new homes, well-designed buildings and great public spaces for locals, workers and visitors to enjoy,” Mr Stokes said.

    [​IMG]
    Plans for Parramatta’s new ritzy central business district will unlock more than 50,000 jobs while adding thousands of homes to Sydney’s west. Picture: SuppliedSource:Supplied

    [​IMG]
    One tower reaching the flight path limit has already been approved by the NSW Government. Picture: SuppliedSource:Supplied

    “From increased building heights for a dynamic city skyline to almost two million square metres of new commercial floorspace, new cultural spaces and fantastic public spaces, this proposal will shape the Parramatta CBD for generations to come.”

    However, there are strict regulations in place to protect public areas such as Parramatta Square, the historic Lancer Barracks and Jubilee Park from being overshadowed by skyscrapers.

    Member for Parramatta Geoff Lee said the Government and council were equally eager to “reinvigorate” night-life but to provide a light and sunny place for people to relax during the day.

    “Parramatta is so full of vitality already; it’s a fantastic place to live, work and play, and the NSW Government is working with City of Parramatta Council to ensure Sydney’s second CBD remains the heartbeat of western Sydney,” Mr Lee said.

    [​IMG]
    The proposal includes expanding and protecting the commercial core of the CBD and ensuring buildings are of various heights so they don’t impact public space. Picture: SuppliedSource:Supplied

    The proposal, which will welcome community feedback, includes expanding and protecting the commercial core of the CBD and ensuring buildings are of various heights so they don’t impact public space or heritage conservation areas while still hitting flight path limits.

    City of Parramatta Lord Mayor Bob Dwyer described the plan as a “significant milestone”.

    “(This is an} exciting next step in the transformation of Parramatta as Sydney’s Central City,” Mr Dwyer said.

    “Council initiated this proposal to help us realise our shared vision for the Parramatta CBD – an economic leader with a thriving commercial centre that attracts world-class businesses and offers incredible lifestyle opportunities for residents.”

    It is understood the vision for Parramatta’s future will be unveiled by NSW Planning within the next few weeks.

    Parramatta CBD: Major facelift for city’s west
     
  18. CJS

    CJS Well-Known Member

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    Old post, but just noticed that property sold for $50,000 less than it did in 2015!
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

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  20. JTR

    JTR Well-Known Member

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