A $300-million adaptive reuse project in Sydney’s north-west has underlined the shift from investors to owner-occupiers in the post-Covid market.
Joint-venture developers Abadeen Group and Perifa secured $140 million in apartment sales for the heritage restoration project, Putney Wharf Residences, about 15km north-west of the Sydney CBD.
Sold was the first tranche of 34 homes at the waterfront project, which will revitalises the landmark Halvorsen’s boatshed.
The project comprising 67 luxury apartments and townhouses was approved by the City of Ryde Council in August.
It is the first collaboration between Abadeen Group and Perifa, along with their partners Phoenix Property Investors and Mitsubishi Estate Asia.
Perifa co-founder Fabrizio Perilli said the buyers showed a shift in demographic from previous luxury developments. Perifa is the development arm of Versatile Group,
“The results show a lot of Putney buyers, [and they are] generally downsizers, rightsizers and parents buying for their children in the future, which typifies the current market out there,” Perilli told The Urban Developer.
“There was period when the investor market outnumbered the owner-occupier, but in a post-Covid world the investors have largely disappeared.
“But you definitely have a suite of buyers who are owner-occupiers, and if they are investors, they’re investing for their family, their children and the future, so they have a different investment mandate.”
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Perilli said that means buyers are more discerning, and that the lack of new luxury product in tightly-held Putney added to its appeal.
“It’s a 1.6ha of waterfront here and a missing piece in the Putney area ... once developed our hope is it adds value to properties in the surrounding area,” he said.
Perilli said one element of the project launch had been something of a mystery for the developers.
“No one was sure how the marina berths would be taken up, whether it was by the apartment purchasers, so we were really happy we sold seven, which is amazing when all we’ve done is release stage one,” he said.
The developer said stage 2 of the project would be put to the market early next year and that marina berths would also be offered to the community in the future.
The success of the Putney Wharf Residences off-the-plan sales highlighted to strong state of Sydney’s luxury development market more broadly.
“The luxury market is here to stay in the sense there is the demand for it,” Perilli said.
“And if you think about that demographic of downsizers and rightsizers, that will continue, because where we’re at in this state with costs ... it’s projects like Putney Wharf that are among the few that are viable.
“But it’s my hope that other parts of the market come back as well because we need it to deliver those housing needs, we need a good, balanced blend of investors, rightsizers, downsizers, and just more product at all price points.”
Construction on Putney Wharf Residences will begin before Christmas and it is forecast to complete by the end of 2026.
Being an iCIRT-rated builder-developer has also been key to Perifa’s success, Perilli said.
“We build for ourselves, and in my opinion when you’re delivering residential product there is an advantage to having your own building arm, and from a confidence perspective with what you’re delivering to market, you can deliver it with more certainty.
“It’s an essential ingredient to delivering a project successfully.”
Putney Wharf might be its biggest and most luxurious currently on the books, but Perifa also has a $100-million project in the works, dubbed Alex & Willow.
It proposes 25 luxury apartments at Crows Nest as the luxury market continues to rise.
