Welcome to the first edition of Property Western Sydney.
In the first three weeks since taking on the role of Western Sydney Regional Director I have been meeting with a range of our members and key stakeholders from across Western Sydney who are at the forefront of shaping the future of this exciting region.
Our region is undergoing a once-in-a-lifetime transformation. Western Sydney is home to 2.5 million people today and this figure is likely to grow to over 3.7 million over the next 20 years. Our organisation is committed to ensuring this region has the right mix of infrastructure, housing and jobs to meet the lifestyle aspirations of this rapidly changing population.
In order to meet this aspiration, the property industry needs to make a strong contribution to public discourse regarding Western Sydney and its future, continuing our advocacy for investment infrastructure, strategic land release and the containment of costs from levies and taxes which reduce supply and affordability in our region.
The purpose of this newsletter is to keep give you a brief insight into what is happening in this very special part of the world. If you’d like to help shape our agenda in Western Sydney please feel free to get in touch. I can be reached on 0412 897 130 or via [email protected]
Parramatta leads with lowest office vacancy rates in NSW
Parramatta continues to be one of Australia’s strongest emerging commercial office markets, according to the Property Council of Australia’s Office Market Report released today.
The office vacancy rate in Parramatta stands at 2.7 percent, down 0.3 percent from the last report published in January. Parramatta’s performance is ahead of the Sydney CBD at 3.7 percent, followed by Macquarie Park, Chatswood, Crows Nest/St Leonards and North Sydney.
By the end of 2020, it is anticipated more than 136,000sqm of newly constructed office space will come online, with a substantial component of this space already under lease.
“Parramatta continues its upward trajectory, and the market is forging ahead with construction of new office accommodation,” the Property Council of Australia’s Western Sydney Regional Director Ross Grove said today.
“It is particularly pleasing to see the construction of office space with large floorplates – this is the most attractive type of office accommodation for some of our largest corporate players and is evidence of Parramatta’s growing appeal.
|
Key market indicators, Parramatta (aggregate) Grade |
Vacancy, Jul 19 (%) |
Vacancy, Jan 19 (%) |
Net absorption, 6 months to Jul 19 (sqm) |
Net absorption, 12 months to Jul 19 (sqm) |
|
A |
0.6 |
0.8 |
853 |
1,421 |
|
B |
3.2 |
4.1 |
2,019 |
1,066 |
|
C |
7.9 |
6.8 |
-1,067 |
1,002 |
|
D |
4.0 |
4.4 |
289 |
-472 |
|
Total |
2.7 |
3.0 |
2,094 |
3,017 |
“Parramatta’s ongoing performance can be attributed to a shared vision for the city’s future. The broad and bipartisan consensus in Parramatta provides businesses with the confidence to make large-scale investment decisions.
“Staying the course on infrastructure and providing certainty around planning decisions is essential to cementing Parramatta’s status as one of the most attractive destinations for jobs and investment.”
To view select Office Market Report data series, visit the Property Council’s Data Room.
Council Roundup
Camden
- The Draft Local Strategic Planning Statement in on public exhibition, concluding 27 August
Campbelltown
- The Property Council made a submission to Campbelltown’s Local Strategic Planning Statement.
Liverpool
- Submissions to the Draft Local Strategic Planning Statement close 9 August
Fairfield
- Submissions to the Draft Local Strategic Planning Statement close 23 August
Cumberland
- Early consultation on a new Cumberland Local Environment Plan concludes 30 August
- Preliminary consultation is underway for a proposal by Cumberland Council to extend its boundary further into the Granville and Mays Hill precincts. It is understood the City of Parramatta opposes the proposals.
- Council is undertaking a comprehensive heritage list review. Stage 1 of the review proposes the removal of ten properties from the list, and Stage 2 seeks nominations for new properties for heritage listing.
Parramatta
- Council is undertaking consultation on public domain improvements for Granville
- At its July 22 Council meeting, it was resolved that a new recommendation be provided to councillors regarding heights and FSRs for the West Auto Alley Precinct within the Parramatta CBD Planning Proposal
Blacktown
- The Geographic Names Board is progressing with an amended proposal to name and set suburb boundaries in the North West Growth Area.
At the GNB Board Meeting on 16 July 2019 it resolved to make a recommendation to the Minister for Customer Service to approve Blacktown City Council’s proposed new suburb boundaries and proposed names except for Lynch, Kwigan and Wran, which are proposed to be substituted for Nirimba Fields, Grantham Farm and Tallawong respectively.
Penrith
- Council will be considering a proposal to reclassify four council owned sites from community to operational sites in October
The Hills
- Submissions close for the Draft Local Strategic Planning Statement on 9 August
Canterbury Bankstown
- Submissions close into the Draft Economic Development Strategic Plan on 27 September
- Council is in the process of preparing a draft Local Strategic Planning Statement and exhibition is scheduled for September 2019
Member profile: Boyuan Holdings Limited
The Property Council recently caught-up with Adam Pearce, the Deputy CEO of Boyuan Holdings Limited (ASX:BHL).
Adam was appointed as the Company’s Deputy CEO in April and has over 20 years’ experience in finance, construction, property and real estate. In this role, Adam oversees the growing Company’s capital transactions, capital management and is responsible for assisting the BHL Board and the CEO in delivering BHL’s development agenda.
Prior to joining BHL, Adam held senior roles for leading Australian developers, construction companies and real estate financial institutions, including Multiplex, Mirvac and National Australia Bank.
What are your core business activities?
BHL is developing a pipeline of high-quality master-planned residential and commercial communities across NSW.
Our projects are focused on the growth areas of western Sydney and include the premium Oxley Ridge Estate at Bringelly; the Northern Gateway ‘future city’ adjacent to the Nancy Bird Walton Airport; and the heritage-inspired Clydesdale Estate at Marsden Park.
All of our developments are in close proximity to new and upgraded infrastructure including the Airport, major roads and rail links, schools and community assets.
BHL also owns and manages a number of seniors living retirement villages in the Hunter Valley and the north coast, providing over 55s with quality, affordable housing options in their retirement.
The Company’s majority ownership of managed investment fund Integer allows us to continue to actively pursue opportunities in a range of sectors in order to create diversified portfolios on behalf of our shareholders.
What attracts BHL to Western Sydney?
We’ve strategically chosen the Region because it really is a ‘blank canvas’ and we now have the opportunity to do something really special with our developments.
We’re doing it from the ground up, creating innovative, master-planned communities, with associated infrastructure, open spaces and sporting and cultural facilities which will cater for the fast-growing western Sydney population.
The Airport and the Aerotropolis will bring enormous opportunities for the Region and BHL is excited to be playing an active role in defining the future of western Sydney through our pipeline of developments.
What attracted you to the Property Council?
We believe the PCA is a strong advocate for the property industry in NSW and is strongly-positioned to support BHL objectives for the communities of Western Sydney.
What are the issues of importance to your company that the Property Council can work with you on?
The NSW Government is doing a fantastic job in committing record levels of funding to bring infrastructure to Western Sydney.
We see the Property Council can play a role in ensuring that this infrastructure funding is delivered for the right projects.
What do you see as the biggest opportunity for the NSW property industry in the next 12 months?
For Government and industry to work together to start to bring to life the fantastic vision for the new Western Parkland City.
This is a once-only opportunity to completely re-imagine working and living in Western Sydney.