FOREIGN developers are shifting their attention from apartments to townhouses, as they strengthen their focus on the upper north shore.
Chinese-backed property developer Greaton’s purchase of three Lindfield land parcels at 16-18 Beaconsfield Pde and 9b Gladstone Pde is the latest in a string of townhouse site acquisitions by overseas-funded developers this year.
Development approvals have been lodged for 43 luxury townhouses and two freestanding houses on the 9120sqm amalgamated site.
Another Chinese developer Poly Australia scooped up a 5292-sqm development site at 3-5 Milray St, Lindfield, where it plans to build three townhouses and 65 apartments. Poly paid $28 million for the four houses.
In Lindfield, a 2719sqm property at 18-20 Bent St, which has development approval for 16 townhouses, sold for $13 million to a foreign buyer.
Overseas buyers proposed to buy $20.65 billion worth of residential property in NSW in the 2015-16 financial year, Foreign Investment Review Board’s annual report shows.
Stricter lending to investors is pushing developers to focus on the owner-occupier market, which is drawn to the extra space townhouses provide, Savills Australia’s head of research Sophie Chick said.
“This means building residential property to suit all sources of demand for the entire life cycle, from single occupiers to families to an ageing population,” she said.
Ms Chick also attributed the growing popularity of townhouses in the area to the strong downsizer market, expecting the trend will “evolve” in the next decade.
“The majority of these buyers have paid off their mortgage on larger family homes, giving them significant buying power on their next property,” she said.
“An increasing number of developers are tapping into this source of demand.
“The north shore comparatively has had very little development over the last decade compared to other areas of Sydney.”
New units and townhouses account for about 75 per cent of all building approvals in the upper north shore from July 2016 to May 2017, figures from Australian Bureau of Statistics show.
By Alison Cheung, North Shore Times