Construction approvals to inject $500M into Western Sydney economy
The New South Wales Government has authorized four major rezonings to generate…
1 March 2018
It’s an exciting time for Sydney, with $7 billion worth of construction set to be completed between now and 2025.
There is currently $4.8 billion worth of projects under construction in the CBD, according to data just released by Core Logic. There is a further $3.1 billion of works already approved for commencement.
With such a massive construction boom in the works, the city streets will be filled with dust and demolition for the foreseeable future, with scaffolding and cranes towering over the iconic Sydney skyline.
There are currently two major transportation infrastructure projects underway: the new Sydney Light Rail, and Sydney Metro railway.
With a $2 billion price tag, the Sydney Light Rail will feature 19 stops over a 12km route. Testing of the network is already underway, with the official open date scheduled for 2019.
With tunnel-works already underway, the Sydney Metro railway will cost $12.5 billion. This project will have a big impact on the look and feel of the city, with numerous office towers having been removed to make way for the railway project over the last couple of years.
Due to the rising incomes and economies in a number of south-east Asian countries, Sydney has noticed an increase in international tourists over the last couple of years. Developers have responded to this demand with an increase in hotel and accommodation projects.
Hotels and accommodation currently make up the largest sector of projects under construction, with $1.6 billion worth of works currently underway in the CBD.
There has also been an increase in residential towers being built in and near the city, to help to accommodate a growing population.
One Circular Quay is an iconic 59-storey residential tower recently acquired by Yuhu Group. Once complete, this development will include 190 exclusive private residences and boutique retail premises.
In 2021 Crown Resorts will open their $2.2 billion resort tower at Barangaroo. The 69-storey building will stand at 275m tall and offer villas and residential apartments. There will also be a 5-storey mixed-use podium comprising of casino facilities, retail and restaurants.
The commercial vacancy rate has dropped significantly in the last 6 months. It is currently sitting at 4.6 percent, compared to 5.8 percent last year.
Barrack Place at 151 Clarence Street is due for completion in October 2018. The project is 22,000 square metres, and 18-storeys high. It will be an A-Grade building, set to achieve a 5-star Green Star rating and 5-star NABERS energy rating. It’s being delivered by Investa and Built.
Investa are also set to deliver the 33-storey 60 Martin Place project in 2019. As one of Sydney’s newest skyscrapers, it will join the Martin Place revamp. The revamp comprises of numbers 20 and 5 Martin Place, as well as the Macquarie Bank building at 50 Martin Place.
Macquarie Group currently have a 40-storey tower proposed for Metro Martin Place, which would see the station with a shopping precinct and office towers if it comes to fruition.
Lendlease lodged plans in late 2017 for its long-awaited Circular Quay Tower. With an estimated delivery value of $1.6 billion, the 55,000 square metre complex could become Sydney’s tallest office structure, at 263m tall.
Even with all this new construction, the demolition of office towers to make way for the Metro Station development has left a gap in supply of office towers. The supply of new office space is expected to remain under the historical average for the next two years.