Adaptable residential development site could help alleviate unit shortage and add supply to help rental crisis

A versatile high-density residential development site located in a strong Sydney growth corridor has come up for sale, potentially offering some much-needed supply in a tightly-held market.

The significant 1,263sqm landholding will allow for a base GFA of up 5,055sqm and is zoned B2 Local Centre, which provides the opportunity to construct student accommodation, co-living, residential apartments or a build-to-rent development.

With quality existing dwellings that can generate rental income whilst any applications are assessed, the property is listed with Trent Gallagher of Colliers and Harry Sullivan of JLL on behalf aprivate company, with price expectations north of $25 million.

“This amalgamated development site presents one of the last genuine opportunities within the Kensington Town Centre,” Mr Gallagher said.

“The relative affordability of the Sydney unit market should increase demand over the medium-term. New stock levels are already low and are likely to remain moderate for at least several more years, while at the same time the return of migrants and students will boost demand,” Mr Sullivan added.

Inner Sydney’s apartment supply pipeline remains well below historical averages, with approximately 1,878 units currently expected over 2023.

With residential vacancy at an all-time low, global investors are looking to target the Australian sector, especially within the build-to-rent, co-living and student accommodation realm.

With two street frontages on a corner site, the property has a passing holding income of circa $470,381 per annum and building height limit of 31m and base FSR of 4:1. It’s location close to the University of New South Wales and the Prince of Wales medical precinct add to the appeal.

153-155, 157 Anzac Parade and 7 Addison Street in Kensington are for sale via an Expressions of Interest campaign closing Wednesday, March 8th 2023.