Barangaroo Impact on CBD Luxury Apartments | Soho Carpool

February 12, 2020

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Here’s the transcript of the video:

Travis from Vanguarde, thanks so much for joining
the Carpool series with Soho. So nice to have you.
Thanks for having me Trent. Absolute pleasure.
So after 16 years in the city market anyway,
there’s, you know, lots of changes, especially on the infrastructure side of things.
New casino, new train going in.
Barangaroo kind of pumping along.
Tell me about a little bit more about your marketplace in terms of infrastructure.
Yeah, I mean the landscape for us has changed dramatically,
especially in the last, probably two and a half to three years.
I think with Barangaroo, the injection of say a six to seven billion-dollar project
at the doorstep of, I guess, a lot of our market.
It's only natural that things will change.
The infrastructure with the Metro will be an absolute game-changer for us,
especially in the northern CBD.
There's 83 restaurants and bars in Barangaroo South that never existed.
You got 30 to 40,000 workers per day in that area
and then once Barangaroo, Central, Crown and once Sydney Harbour’s done
there’s going to be another 4,000 people living in the area by 2024.
So it's only kind of like really spiked the interest for the area
and really given the, I guess, the existing apartments.
Kind of putting them on the map.
Like ‘You know what? This is actually a great place to invest.
I don't need to be in Barangaroo. I can be.
If I want something bright and shiny.
If I buy on the perimeter, Walsh Bay, Millers Point, Kent Street Village,
I pay a lot less per square meter.’
Because, you know, I’d get the same kind of infrastructure and the same kind of lifestyle that just didn't exist before.
Yeah sure.
It's just becoming such a better place to live in the city.
And I mean do you think that's more geared towards more investors coming in
and potentially renting it out to professionals that may work at Barangaroo?
Or do you think it’s owner-occupiers wanting to live in this area? How’s the split?
You know what? The demand is really strong,
especially in the last, probably two quarters for us on a daily basis.
Demand is always there for the owner-occupier.
It's always going to be the premier place to live in the city.
So it's always there.
They want bigger, better, they want, probably a bit more in terms of the top-end fit-out.
They want bigger proportions, and they’re happy to pay for it, you know?
A lot of these people are coming from these big houses in the east or south or the north
where they've experienced in a monumental growth.
So if they come in spending a four / five / six million on something,
it's not out of the, you know, the sphere.
And then the on the other side, the flip side the investor is looking
for that long term hold, that long term gain.
Yields, you know, they used to be hovering at 4.5-5% on a net yeild.
Now, you're looking at more 3-4%
So you're not buying purely for a yield play.
A lot of our investors are two-prong so they’ll buy something for rental,
but then they'll use it within that five-year period.
So they put their put foot on something now, before Barangaroo explodes again,
potentially in 2024 / 2023 when everything is done
and everything is connected
and I guess that's, kind of where the rule kind of, I guess
that luxury, kind of luxury investor, blue-chip investor is really what we're after.
I think the real key is too, some real great projects being finished this year.
Well, maybe the tail end of 2020, early 2021
like Harrington Collection, you got Loftus Lane, Opera Residences, King and Phillip,
Obviously Crown, Barangaroo in February 2021.
So all these luxury super high-end apartment buildings
which will predominantly be an owner-occupier or a part-time owner.
They'll be finished.
So then you really see that 60 / 70 / 80 thousand per square meter properties.
Finished, done, valued and settled.
Because at the moment, they're all off-the-plan.
So that's going to be, really, it's gonna be an exciting time,
late this year and early 2021
I think the landscape will change again.
And I think for the best.
Yeah, sure.
Contact details, let’s say I’m a buyer or seller
or even a tenant because you guys got a rent roll as well.
Um, yeah, how do I get in contact with you?
You can call me 24 hours a day.
We got a couple of offices in the city.
On in the base of Observatory Tower, 168 Kent Street.
And one is Stanford Residences, 171 Gloucester Street.
Mobile number 0414 347 713
Will answer at anytime.
Travis, thanks so much for joining the Carpool series with Soho.
How fun was that?
Thanks, mate. Cheers. Lovely.
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