The long waiting list for government subsidised apartments in Sydney is expected to drive strong interest in a 41 apartment property at Guildford.
Guildford project to deliver affordable housing
The long waiting list for government subsidised apartments in Sydney is expected to drive strong local and off-shore investor interest in a 41 apartment property currently under construction at Guildford.
The 70-74 O’Neill Street property will be managed by social housing not-for-profit, Community Housing Limited (CHL) - one of Australia’s largest providers of affordable housing - until June 2026 and will offer purchasers a total gross rental potential of more than $1.1 million.
According to Savills Director Metropolitan & Regional Sales, Robert Lowe, who is managing the sale process with Director, Ben Azar, the property will also attract the National Rental Affordability Scheme (NRAS) rental incentive, currently at $11,048 per annum per apartment, along with significant depreciation allowances.
“This is a fantastic arrangement involving governments, not-for-profits and private investors in delivering a much needed resource to the nation’s least affordable city for housing.
“Some forecasters are predicting substantial price growth in Sydney’s housing market next year while others are suggesting minimal growth. Whatever scenario plays out, the fact remains that many people have been priced out of the market and as a consequence there exists a significant shortfall in affordable housing that is going to drive strong values for projects like this for the foreseeable future.
“As Nick Greiner says, affordable housing provides a step out of welfare dependency and the purchaser of this property will be one of the first in this state to be a part of that significant social contribution,” Mr Lowe said.
On completion, the project will comprise 41 apartments over five levels including 19 x one bed apartments, 16 x two beds, six studio apartments and 36 basement parking spaces. The project is well located to public transport and shopping and only 4.5 kilometres from Parramatta CBD.
The purchaser, according to Mr Azar, will be able to on-sell strata units from completion, however leasing management will remain with CHL until 2026. After June 2026 management will revert to the owner who can then manage as they would any other apartment.
“For investors, and, importantly, that includes foreign investors, this project provides long term, secure income and significant depreciation benefits from a fully managed property with upside.
“The long waiting lists for affordable housing and the fact that such tenants have a history of long-term tenancies, will also be attractive to potential purchasers,” Mr Lowe said.
The property will be sold by Public Tender closing at 3pm, Wednesday 30 November.