Apr 19, 2012 | Comments 1
Australia’s Crown Group is now offering Singapore investors an opportunity to purchase two of its residential developments, Top Ryde City Living and V by Crown at Parramatta, in Sydney.
At a press launch last week, Iwan Sunito, chief executive officer for Crown Group, gave a briefing on Sydney’s property market outlook and said capital appreciation in Sydney is promising.
“Planning regulations in Sydney are really strict. It is difficult to get projects up and running due to overdevelopment and strict planning guidelines by the local authorities. This has led to a limited supply of housing units,” said Sunito.
Indeed, according to the Australian Bureau of Statistics (ABS), there is currently a shortage of 50, 000 dwellings in Sydney.
This has made Sydney the only major Australian city lagging behind in terms of supply, producing less than half of the underlying demand for residential properties.
Data from Knight Frank Autumn 2012 Market Update further suggests that there may be further upward pressure on capital values and rents, particularly within Sydney.
In addition, the data showed a 52.2 per cent increase in new home loans in the last four months of 2011 compared to the same period in 2010.
Driving demand for housing are local residents who now prefer living away from the suburbs and in an apartment with full facilities, new immigrants as well as a growing number of local and overseas investors eyeing the Sydney market.
“50 to 60 per cent of the market is dominated by Asians,” said Sunito noting that there has been a 30 per cent increase in new immigrants in Sydney.
June 2012 launch
Revealing the reason for the June 2012 launch, Sunito said the Australian government is currently providing free stamp duty of up to AU$600, 000 (US$621, 127).
For an AU$600, 000 property, that translates to substantial cost saving of AU$22, 490 (US$23, 281).
For its Top Ryde City Living development, Crown Group will be rolling out its one-bedroom plus study, two-bedroom, two-bedroom plus study, three-bedroom, penthouse units in its phase three launch ranging from AU$500, 000 (US$517, 645) to AU$2 (US$2.07) million.
This AU$500 (US$518) million project is located above Australia’s largest and newest shopping centre near the Sydney 2000 Olympic park and 15 to 20 minutes away to the CBD.
Meanwhile, V by Crown will be offering studio, one-bedroom, one-bedroom plus study, two-bedroom, two-bedroom plus study, three-bedroom, three-bedroom dual key and penthouse units ranging from AU$350,000 (US$362, 360) to AU$2 (US$2.07) million.
V by Crown is an AU$300 (US$311) million project comprising 420 apartments, a resort-style hotel, offices and retail spaces.
Savills has been appointed as the exclusive marketing agent for Top Ryde City Living and V by Crown.
Investors need to only pay a 10 per cent deposit while the rest can be financed by banks or equity.
According to Julian Sedwick, director, head business development, international residential sales, Asia Pacific for Savills Residential Pte Ltd, the agency is currently in talks with various banks in Singapore to provide financing to local investors.