Sydney apartments are increasing in value with developers stepping in to obtain underutilised, prime sites across the city, particularly at Potts Point.
Terra Ferma partnered with Knox Group to negotiate with 20 owners across two buildings for a site at the corner of Oak Lane and Wylde Street.
They have submitted a development application with the City of Sydney to convert the 20 studio apartments into five apartments spread across five floors with TZG Architects.
Although apartment prices at Potts Points have plateaued at a median of $845,000, Knox Group and Terra Ferma expect this development to far surpass this and set a suburb record.
Hotspotting’s latest Price Predictor Index found Sydney’s apartment market recovery was most evident at the top end, while cheaper areas struggled.
Hotspotting general manager Tim Graham said they noticed this trend three months ago.
“This correlates with other data, which suggests that Sydney is at the forefront of a national revival in property prices after weakness in many—but not all—locations in 2022,” Graham said.
“Inner-city precincts with a high content of apartments continue to attract solid demand, notably Sydney City and Inner West.”
Knox Group co-director Daniel Moroko said it took almost a year to secure the sites.
The price guide for Potts Point could be on the rise with a number of luxury apartments in the pipeline.
Time and Place lodged plans for 28 apartments to replace a post-war complex at Macleay Street.
Thirdi and Toohey Miller got the green light from the Land and Environment Court for its 13 apartment plans at Brougham Street.
Former Kings Cross nightclub owner John Ibrahim is behind plans to build a five-storey residential shoptop project, lodged in March.
A boutique hotel with 18-suites was also planned at Macleay Street by property investor Tony Benjamin.
