The project was developed by Australand. Investors were able to purchase a two bedroom unit for
approximately $290,000 offplan in 1997. The development settled in 1998 with investors seeing
there two bedroom unit now being woth $350,000.
This coincided with Sydney really starting to embrace inner City living. A two bedroom today in
the same block will sell for approximately $590,000 seeing investors double their money in 7 years.
This is a compound growth rate of 10% ignoring rental yields.
Randwick - Pharlap Gardens, 42 Alison Rd.
When many pundets thought the property boom was over in 1999, people still missed the effect
infrastructure can have on prices. Around this time saw the opening of the eastern distributor.
This tunnel halved the time it took to get from Randwick to the City. Part of Sydney's market is
based on a time premium. If the time taken to get to the CBD is greatly shortened it will heighten
the appeal to City communters.
The Randwick develoment saw people purchasing 1 bedroom units for $270,000 in 1999 and settling
on them in 2000 and getting rents of $350/week with unit valuations being $330,000 to $360,000,
The Eastern Distributor was a catalyst for greater returns over a shorter period of time. With
interest rates coming down around 1% and with rents in this block on the increase investors were
rewarded with positive cashflow day one.
Alexandria - Lawrence Street
Alexandria is an emerging suburb that has really only started to take off from the mid 1990s.
Reluctant investors took the risk that the suburb would evolve in 1998 with this investment and
it paid off!. Two bedroom units sold for $280,000 off the plan.
Resales in the block saw two bedroom units selling for $375,000 in the year 2000.
A new two bedroom unit starts from $470,000 today.
Marsfield - Nile Close, " The Forester"
This Walker Development benefited from two main things
1. Its Amphitheatre unit and integrated free standing home design
2. The opening of the M2 Motorway.
A two bedroom unit could be purchased for $270,000 off the plan in 1998 and was worth approx
$340,000 in 2000 upon completion. The yields were not as strong however as inner City apartments.
Roselands - Hillview Street
These units were marketed from June 2001. December 2001 saw the linking of the M5 motor way to the
Eastern Distributor. This took the trip from Roselands to the City from 34minutes to 17. Bottleneck
areas such as Canterbury rd and Newtown can now be avoided.
The development settled in late 2002, with investors and owner occupiers alike seeing just how easy
it is to get to Roselands from the City. If you were to compare the suburb to Marsfield and the M2 (similar distance to the City)
we believe the Roselands area is still undervalued.
