Sydney Property Market Hot in Transactions Outside of CBD

Sydney’s property market has been abuzz recently with a potential blank development slate hitting the market in Mascot, two separate retail assets selling in Ashfield and the Engadine Tavern listed for sale in Sydney’s south.

Managed by Knight Frank, the site for sale on 573 Gardeners Road, Mascot has been labelled a rare opportunity in an area where current supply is limited.

Spanning approximately 2,788 square metres, mixed-use zoning in the area presents a range of development opportunities for future owners, according to Knight Frank sales director Adam Bodon.

“With outstanding transport connections and facilities in the surrounding area, we expect it will draw interest from a range of developers,” he said.

“Based on similar approvals on nearby projects we would expect the site to yield approximately 80-85 apartments.”

The site currently hosts a two-storey commercial and industrial building which features a ground floor showroom, storage, reception, offices space and a first floor workshop.

The site is expected to sell for around $20 million.

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The Liddy family has placed the Engadine Tavern on the market, parting with the family-owned pub after 39 years.

The tavern is expected to sell for $27.5 million.

The Engadine Tavern sits on a 5576sq m site across five lots and has redevelopment potential up to a 20-metre height with a floor space ratio of 2:1. CBRE is handling the sale.

Related reading: Two Sydney ‘Super Sites’ Hit the Block

In Ashfield, Cushman & Wakefield offloaded two retail sites in one package to an Australian investor based offshore.

The sites are located on the “high street” retail strip on Ashfield’s Liverpool Road and are currently in use as an ANZ Bank branch and Chemist Warehouse outlet.

Individually, the 789sq m Chemist Warehouse sold for over $8.88 million, with a recently signed 10-year lease by the pharmaceutical retailer Chemist Warehouse, as they generate annual net income of $420,000 and a 4.89 per cent yield.

The second site is occupied by an ANZ Bank, and was sold for $5.65 million representing a yield of 4.4 per cent.

Cushman & Wakefield sales director Anthony Bray said the yields attained demonstrated that values were still robust for retail properties supported by long dated, blue-chip retail tenants.

“During the last quarter we saw retail sector investment rise 72 per cent across the country, which contributed to the strongest year on record.

“While neighborhood deal activity drives this result, we continue to see interest in mixed-use and non-CBD retail assets, particularly in areas supported by underlying demographic fundamentals,” he said.

A private owner in Wilton sold a 44.14-hectare site at 570 Picton Road to the Woolloongong Catholic Dioceses for $17.34 million.