Owner occupiers underwriting transformation of Sydney’s industrial sites
Owner Occupiers Underwriting Transformation of Industrial Sites in Sydney
Alexandria has played a pivotal role in Sydney’s history. Located between the Sydney CBD and the airport, by 1943 Alexandria was Australia’s largest industrial area, with hundreds of factories making it the powerhouse of the Sydney economy.
Strong recent demand for residential property in inner-city Sydney has seen an exodus of industrial sites from the area, with apartment developments transforming the suburb. Unusually for Sydney, public transport services are good, there are dedicated bike paths into the CBD, and the planned nearby WestConnex motorway interchange promises reduced travel times for motorists.
Craig Moore, Associate Director at McGrath Projects, thinks that formerly industrial areas within Alexandria and the Green Square precinct are rapidly gentrifying, and that the large number of retailers, cafes, and strong public transport links are leading to a surge in interest from owner occupiers. O’Riordan Street is already home to some of Sydney’s best furniture and homewares retailers, and quickly becoming a haven for foodies with local favourites Sonoma, Simon Johnson’s, The Grounds, and Bourke Street Bakery.
“I don’t think it really matters which political party ends up winning power, I can’t see negative gearing for property being knocked on the head. I think there will be a massive push for it to remain,” Mr Moore said.
“The reason is simple. Negative gearing is an investment strategy that helps you reduce tax and grow your wealth. It creates a big incentive for people to rent out properties to tenants. A lot of the rapid urban renewal happening in Sydney is heavily underwritten by these investment strategies.”
The Birmingham apartments in Alexandria incorporates important heritage features that epitomise Alexandria’s industrial past. Originally built over several years from 1935, the heritage factory site was owned by H. G. Whittle & Sons, a very prominent building and construction firm that constructed a number of major government buildings. Situated on a bend in the street, the heritage factory featured a very unusual curved facade which has been seamlessly integrated into the design of the new boutique development.
The apartments include elegant minimalist kitchen cabinetry and stone benchtops, air-conditioning, with many apartments featuring north facing views. Each apartment includes a lockable bike storage locker. A huge rooftop garden includes several secluded relaxation zones and BBQ facilities. Some of Sydney’s best beaches are a short bus or car trip away.
The Birmingham Apartments
29 – 33 Birmingham Street Alexandria
Studios, 1, 2 and 3 bedroom apartments.
Studios $530,000 – $580,000
1 bedrooms $620,000 – $660,000
2 Bedrooms $750,000 – $880,000
3 Bedrooms $1,150,000 – $1,200,000
Developer and Architect: Level 33
Building includes communal rooftop gardens and BBQ facilities. Apartments include air-conditioning and lockable bike storage lockers.