Diversified real estate developer and investor Mulpha Australia says it has sold more than 60 per cent of the first stage of its $1-billion masterplanned mixed-use development in Sydney’s north-west.
The $173.5-million construction of the first two of what would eventually be nine buildings was expected to finish within the next 12 months, the developer said.
Mulpha head of development Tim Spencer said the strong sales had been driven by a demand for bigger apartments, which had meant the original 196 apartments were whittled down to 181 through floor-plan amalgamation by buyers.
The first stage of what is known as Norwest Quarter is made up of two buildings—one of 14 storeys and the other of 24—at 40 Solent Circuit, Norwest, about 25km from Sydney’s centre.
Mulpha’s plans to deliver a total of nine residential towers ranging from eight to 26-storeys and including about 860 apartments were given the green light in late 2019. Construction began in August 2022.
Spencer acknowledged it had been a challenging time for the industry.
“While 2023 brought some stabilisation in material prices, challenges persisted with labour rates and subcontractor availability,” he told The Urban Developer.
“Encouragingly, 2024 is showing signs of further stabilisation, partly attributed to the decrease in large government infrastructure projects, which previously strained labour resources in the housing market,” he said.
“The noticeable decline in dwelling approvals and commencements is now reflecting in the volume of work under construction, gradually alleviating labour constraints.”
Executive chairman Tony Touma’s Sydney-based Parkview Constructions won the contract to build the first stage.
Spencer said the success of a project depended upon closer partnerships with a limited pool of top-tier contractors.
“The era of fixed-price design and construct contracts burdening builders with all the risk, is evolving,” he said.
“The paradigm shift towards shared risk necessitates developers to proactively engage in the de-risking of projects from design, all the way through construction and full lifecycle.
“This is going to be a major differentiator between the best of developers and the mainstream.”
One-bedroom apartments in the two buildings are selling for $720,000 to $820,000, while two bedrooms sell for $970,000 to $1.6 million. Three-bedroom units are going for up to $3 million.
Spencer said many of the buyers were downsizers from the same area, as well as young families that were employed locally.
“Investors, recognising the projected growth in Norwest, have become more active participants in the community,” he said.
“The substantial infrastructure investments, particularly the Metro, have contributed to this trend.”
The two buildings in the first stage—known as Banksia and Lacebark—will be carbon neutral in operation, providing residents with cheaper energy bills with 100 per cent electric and no gas provision.
Spencer said the second stage of development was still in the early design phase. He expected to submit a development application by September this year.
Mulpha would explore Design for Manufacture and Assembly (DFMA)—products that are designed with manufacturing in mind, thus saving time and cost—as well as modular construction.
“We aim to enhance our bespoke designs with the rigour behind kit-of-parts systems thinking,” he said. “This not only reduces design, coordination, and cost risks but also addresses the contractors’ primary concern—risk of the unknown.”
