I recall some time ago someone on here making a post about the new units going up in Wolli Creek. Five years ago there was no suburb called Wolli Creek. Now there is one, and it’s a vertical suburb.
On the weekend, I went through a few of the blocks – a friend of mine is looking for a PPOR.
Gee, they’re alot better at a distance than they are close up.
It’s still a bit of a wasteland at Wolli Creek. There is a train station, but the promised ‘retail cetre’ and ‘parklands’ seem a long way off.
One building we went into was finished over a year ago and there are lots of empty units in it. Two that we went into were filthy – lots of builder’s dust. They hadn’t been cleaned since finished.
I think that building was an Australand one. They can obviously afford to sit on the stock indefinitely as the prices weren’t all that cheap.
Then we looked a few new buildings in other areas. These were smaller ones – up to 25 units – and I think the developers were getting a tad desperate.
Two of the buildings were ones where it appears there were no pre sales i.e. they didn’t flogg anything off the plan 2 years ago.
I’m speculating that the developers bankrolled the projects themselves predicting 2 years ago the boom would keep rolling on and now they are getting squeezed. That’s a perennial risk for small developers. They’re sitting on stock that is worth probably 15-20% less than they predicted they would be selling it for. And they can’t sit on the stock forever.
There are good deals to be made in new, smaller complexes right now. The key is making sure the building has no defects as the developer and building may not be around for long after settlement.
As always with units, you need something unique to differentiate them from other stock out there. I found 2 good ones on the weekend.
Scott
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http://www.depreciator.com.auGreat info, Scott. It’s good to hear an objective report as I don’t live in Sydney.
We have a unit there (2yrs old) and in the complex (6 blocks, each max 5 storeys) there is currently zero vacancy rate, and the rent on our unit has gone up $30 per week over the last 12 months so the yields are rising. According to the property manager the last 2 units that came up for rent were occupied the day after the last tenants left.
I wonder then, if, what you encountered was a lack of investors, whilts there seems to be no lack of tenants?
Interesting, thanks.
skippygirl
I suspect those low rise blocks like yours Skippygirl do better than the high rise ones – the big ones are sort of the Wolli Creek landmarks and are visible from miles away. The high rise (up to around 18 stories) would have much higher ongoing fees, too. And the great views that buyers are paying for now are going to be built out, too. Wolli Creek may be a good place to live one day, but those manufactured suburbs can take time to find their feet.
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http://www.depreciator.com.audepreciatior,
Thanks for your honest opinion on wolli creek. I guess you’ve seen Rockdale- my god, it looks as if that place will be a slum of the future- how many dozens of unit blocks with 100 generic apartments can there be in one place before they have to drop rents to almost nothing to get tenants.
It’s interesting what you have to say about rental vacancies in WC. There are still properties coming off the plan all over sydney and the fringe suburbs. It’s why I think this “rental squeeze” thing is mostly propaganda, and I agree with you that developers and OTP onsellers would be becoming desperate.
Same goes for Alexandria and Camperdown- so many units built, so many vacancies, and buyers trying to beat the demographics.
It’s a bit of a pity about Green Square- it had so much potential.
kay henry
Hi Kay,
It’s been interesting having a friend wanting to buy a unit – it’s a long time since I really looked at the Sydney market.Yes, Rockdale is tragic. Hurstville will go the same way – the lure of established shopping precincts and good transport.
Green Square is another one of those ‘manufactured’ suburbs. Like Wolli Creek, it has a new railway station and not much else. In ten years time it will be interesting to see what they’re like.
At least Alexandria and Camperdown were suburbs before the unit developers turned to them. They have parks and families and established cafes there etc. (Camperdown has more of this than Alexandria.)
Add Waterloo (around Danks Street esp) to the list of unit zones that may or may not come good. There is a particularly ugly Landcom development there.
I wrote off Moore Park ages ago. And they’re still building there.
You really have to walk around in these precincts to get a sense of what it’s like in them. Overcast autumn afternoons don’t do them any favours.
One of the buildings we looked at was really interesting. It’s in Marrickville. Yes, I know alot of people don’t like Marrickville, but it does pop up regularly on those future ‘hot spot’ lists. This is a block of I think 27 units – 6 stories. One that we looked at was a one bedder with a huge terrace on level 5 (great city views). It’s a 2 storey unit with total floor area of 170sqm. Ceiling heigth in the lounge/dining area was at least 15 feet – bizarre. The price may be around $470K. It’s not something you’d buy as an investment property, but to live in it would be great. I’ve never seen anything like it in the inner west. And that’s the key i.e. if you buy a unit, I think it has to be unique in some way and not crowded by other blocks.
There is another block in Marrickville. Another small developer, but the apartments are not special at all. They’re not using an agent to flog them – I get the feeling that it’s an extended family project and it seems to be taking an age to finish off. On Saturday, there was a young Greek woman doing the meet and greet in the foyer – the daughter?. An old, glum Greek man – the grandfather? – sat in the corner smoking. There were some middle aged men – dad and the brothers? – doing some tidying up. I sensed desperation in the air. I fear somewhere in Sydney there is someone working on a ‘Mortgagee in Possession’ sign.
Scott
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http://www.depreciator.com.auawww Scott
I think they need to get rid of the family in the foyer to sell that unit- I really do.It’s interesting about gentirifaction… Alexandria was a big industrial suburb before the boom, and now, after the boom… well, it’s just a big old industrial suburb! Same with Marrickville really- as in it is the same suburb with the same demographic- which I like- btw- but it is the same people who lived there 50 years ago, and live there now. Redfern is the same, chippendale is the same (I love my chippo!) I think it takes generations and decades for places to gentrify- sure, you can put in all the funky cafes, but the old locals will still use the deli and the old pizzerias. Frankly, I think gentrification makes suburbs a lot poorer culturally.
I remember seeing a show on tv about waterloo, and a woman who was a lon-term resident f public housing there said gentrification means that new people in ther neighbourhood sometimes don;t get to know their neighbours, send their kids to local schools, or shop locally… it really can dedgrade the whole community infrastructure- and probably make communities less safe, as people tend to keep an eye on each other in neighbourhoods where folks know each other, whereas if peole are feeling alienated, they tend to see accommodation as utilitarian and as a financial statement, rather than as a “home”.
kay henry
Marrickville is great! They are in the flight paths (which has no real impact due to steep take-offs) so high-rise should be out for a very long time. It is also extremely culturally diverse and close to the city. It is getting better year in and year out.
Robert Bou-Hamdan
Mortgage AdviserYep, agree with all that Kay. Marrickville is losing its Greeks and Vietnamese, which is a pity.
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http://www.depreciator.com.auThey lost the Lebs a while back. Who is the dominant culture now?
Robert Bou-Hamdan
Mortgage AdviserScott, what’s happening with Mascot Airport – I heard there is a redevelopment plan or proposal to develop something (a hotel?) on the west side, the Cooks River or Kogarah Golf Course side?
Do you kow anything about this?
Re your observations on WC – it would be great to survey the current tenants and get some real priamry data on how they feel about the area, what is lacking, what they need etc. It is a shame that not much of the promised shops, supermarkets, restaurants etc have appeared over the new station.
Cheers
skippygirlRobert I fear people like me are becoming the dominant culture. I much prefer the Greeks and the Vietnamese to people like me.
The Greeks are getting old – many came over in the 50s. Their children don’t want to live in Marrickville, a ‘wog’ suburb.
The Vietnamese tend to move further west when they buy, though many of the local businesses are still Vietnamese. There are walking tours of the Vietnamese (and Greek) shops on the weekends.
I heard fron a real estate agent that there are many gays moving into Marrickville – it’s the next suburb after Newtown. I’m relieved if that is the case because they liven up a suburb.
I also heard that Marrickville has more artists than any other suburb. I suspect this is because artists have been squeezed out of the inner city and Marrickville still has some pockets of commercial buildings that make great studios.
Scott
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http://www.depreciator.com.auScott,
It’s possible that marrickville may be the new glebe, but with the newer style academics. Marrickville is quite “postmodern” in a way- a huge mix of the new and old. A lot of people I know are looking ofr that mix. They think new (think WC, Green Square) can be bland… whereas old (Marrickville, St Peters) can be a little oppressive… so why not mix it up and have both? It’s why te old RSL’s are becoming so “in”… together with the renewal of furry carpet on the walls- check out Newtown RSL for a good example of this. Wall to wall young people there too- dunno what’s happened to the old diggers.
I think this trend is gonna be the next change- pomo-change?? Mix of old and new. And I think the Bible Belt, whilst *popular* right now, will never be in vogue. I think the traditional yuppies- the suit wearing social climbers, or perhaps the old money types, will still congregate in the east, or in the north shore (a bit too white for me and mine), but more community types, who aren’t obsessed with money and status (nouveau riche are the worst kind, I reckon), will still be wanting that diversity of old and new.
kay henry
I’m not a lover of units but one development in the CBD has caught my eye.
It is built inside the facade of a beautiful sandstone church. They have been building for around 4 years now I think.
Yes Anibus, I’ve been watching that one inching up. Our office isn’t far away. I’m hoping the bits that extend beyond the old church structure don’t overwhelm it. It’s one of those developments with a difference and in a pretty good spot.
Kay, one thing Marrickville lacks that Glebe has is the student population.
The local council did something interesting last year. They formally recognised the 50s European veneer that was added to the Federation housing stock ‘as a valid architectural period’. That veneer includes columns, concrete, tiles, stucco, pebblecrete etc. Of course it doesn’t mean people who buy there can’t rip it off. I don’t see much sense in taking something back to Federation, though – architecturally it was a pretty dreary era.Tax Depreciation Schedules
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http://www.depreciator.com.auYes, Scott, Glebe is between USYD and UTS- walking distance to both, whereas Marrickville is a bit more of a bus trip, but still
Anubis- that whole “Fusion” notion is massive in Architecture and Design Schools right now. I am amazed that people don’t view it more as the way things are moving- the old facades with the modern accoutrements. I must say it took me a while to get used to though- it’s not what one has been raised on, and it can be hard to keep up. Thank god for progressive architects though.
I am really amazed when people buy in sunburbs so far out of sydney. When I hear that there has been some new arterial road and it will make the drive to work now only 50 minutes… I cringe. You can pay similarly for a place almost in the city, with all the city has to offer.
kay henry
I was just checking out a lovely property (on realsestate.com.au) around the vicinities we have been talking about- just check out the infrastructure- and reasonably priced- it’s quite mad how well-serviced these areas can be!
# Train Station:8
# School/College:28
# Post Office:14
# Hospital:6
# Fast Food:50+
# Restaurant:50+
# Doctor:50+
# Police:5
# Bank:2
# Chemist:19
______kay henry
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