The conversation around housing affordability and the pressing demand for rental accommodations has taken center stage in the media.
Sydney’s Eastern Suburbs are grappling with an undersupply of spacious apartments, as downsizers are increasingly on the prowl. This pressing demand has set the stage for developers to dive in, scooping up entire apartment blocks to replace them with ultra-modern, luxurious units.
Being entrenched in the real estate world, I’ve seen the evolution and complexities that underpin property development. No longer is it just about shelling out large sums for land; it’s about navigating a detailed and often prolonged process. Developers now embark on intricate quests, sometimes spanning years, to acquire numerous properties or apartment units. This intricate journey, from initial site acquisition to designing masterpieces and the finesse of development, is much like piecing together an art masterpiece – where each detail matters, and passion and precision go hand in hand. This dynamic industry demands a cocktail of ambition, vision, and raw determination.
Speaking of housing affordability, the Eastern charm is hard to resist, but finding solutions feels like a hot potato game between government layers. It’s hardly surprising to see a surge of property investors looking for an exit strategy. With upfront costs like stamp duty, recurring ones like land tax, and the added burden of high-interest rates, strata levies, agent commissions, and the eventual bite of capital gains tax, it’s a challenging terrain to navigate.
The state government, meanwhile, sits on a potential goldmine with their high-value housing commission lands. These parcels, though costly to maintain, are strategically located, making them prime candidates for a zoning overhaul and progressive redevelopment.
Yet, with all the upscale development, many are left behind – our next generation, educators, healthcare workers, first responders, to name a few. For example, Bondi Beach, one of Sydney’s premium locales, is set to see a transformation at 58 Campbell Pde, replacing 17 apartments with a boutique 10-unit complex. Bellevue Hill isn’t far behind, with plans to revamp a 1928 building to make way for luxury accommodations.
In neighboring Potts Point, two three-story buildings are on the demolition radar, paving the path for a swanky six-story building with upscale apartments, rooftop pools, and vast underground spaces. Nearby, in Tamarama, four apartments have been marked for replacement by a singular luxurious dwelling.
There’s more – a proposal aims to transform 23 units at 122-128 Hewlett Street in Bronte into nine high-end residences, now under the keen eye of the Land and Environment Court.
While developers cater to the surging demand for luxury, especially from older residents of places like Bellevue Hills and Rose Bay, there’s a pressing need for affordable housing. The question remains: Can we find a solution if local councils continue to play it safe?