Industrial heavyweight Goodman Group is switching gears with plans to develop 1236 apartments in Northern Sydney as the build-to-rent sector comes of age.
Goodman has lodged two large-scale applications with the City of Ryde council for Macquarie Park.
Moving on the investment trends is a strong point for the global group, which started developing data centres in 2010 and which now comprise 30 per cent of its $13-billion development workbook.
Across Australia, the number of build-to-rent apartments under construction has increased by 65 per cent, according to a JLL report in August.
There are 4000 apartments due for completion in 2024—in 2025 it is predicted to rise again to 7500. however, only 13 per cent of those would be built in NSW, the report said.
The Goodman projects now on exhibition could give the group a massive share of the market—the two projects have an estimated capital investment of $435 million and $305 million.
The larger of the two proposed projects comprises seven buildings up to 20 storeys with 736 apartments plus, retail space, recreation facilities and basement parking.
This project, which would be Goodman Group’s 10th in Macquarie Park, 13km north-west of the Sydney CBD, is slated for a 21,730sq m site at 85-97 Waterloo Road and 2 Banfield Road.
Goodman had originally planned a commercial development for the site in 2017 but that would “result in a significant financial loss” due to low demand.
The plans also include a park and three-storey amenity “clubhouse” for publicly accessible areas including a gym, pool, wellness centre, multi-purpose function space and rooftop terrace.
The other project comprises four buildings between 7 and 20 storeys with 513 aparments, retail space, community uses space and basement parking for the site at 35 Waterloo Road.
The development on the 15,915sq m site would also have a medical centre, childcare and supermarket.
The sites were “underutilised and underperforming as a result of the declining commercial market in Macquarie Park”, the application said.
DKO Architecture has designed both projects while Oculus has created landscaping plans for the sites that are near the Macquarie Park Metro Station.
The application reports by Ethos Urban note Goodman’s interest in the sector and intention for the sites.
“It is Goodman’s intention to transfer the management and ownership of the proposed development to an established build-to-rent provider,” the report said.
“They are dedicated to delivering a high-quality and well-designed development that considers the potential environmental impacts, recognises and connects with Country, while also enabling the creation of a truly mixed-use precinct.
“Being one of the largest landholders in Macquarie Park, Goodman has a strong interest in maximising positive outcomes for the site and the surrounding area.
“Build-to-rent provides an alternative choice of housing for the growing number of renters in Australia, improving housing diversity by providing a secure rental home for those saving to buy their home or for those who choose to rent long term.
“It is a major contributor to housing supply globally, with widespread adoption in the US and Europe.”