One of Sydney’s most exciting value add opportunities is coming to market in Sydney’s Inner West, satisfying the hungry demand for residential accommodation in a constrained market. The property is being exclusively marketed via Colliers agents Matthew Meynell and James Cowan under instructions from KordaMentha as Receivers.

The opportunity comprises a boutique mixed-use development accommodating 38 apartments and 2 retail shops above two basement levels of parking servicing 38 cars. The complex is approaching construction completion.

Situated in a proud and well established Inner Western suburb, the complex is within a short walk to Lewisham West Light Rail Station, Lewisham Train Station and Summer Hill Train Station. Lewisham is situated only 7 kilometres West of the Sydney CBD, and centrally positioned within the Inner West precinct.  

The complex sits amongst high quality product including the Flour Mill Development by EG Funds, Luna by Meriton, Elite by Level 33 and Society by Denwol. 

The builder, Decon Australia Pty Ltd, was placed into liquidation during December 2023 and could not complete the development. Construction is approximately 98% complete. Building Commission NSW has issued a draft Prohibition Order and draft Building Work Rectification Order, which specifies 14 items requiring rectification prior to the occupation certificate being provided. 

“Nationally, the Institute of Public Affairs (IPA) recorded 380,000 new migrants into Australia through FY2022-FY2023, while only 148,000 new dwellings were built.  Within NSW, net overseas migration is forecast to reach a record high +174,000 in FY2023. This alone demonstrates the sharp supply cliff we have already reached and until meaningful stock is delivered to the market we will continue to see strong rental and price growth.” says Matthew Meynell, Managing Director, Investment Services Australia

“The median apartment price in Lewisham is $832,500, whilst the median house price is $1,925,000 meaning the average house is 2.3x more expensive than the average apartment. With the low level of completions throughout 2022, 2023 and 2024, there is an alarming undersupply of apartment stock in this location which is a concern due to the affordability crisis that freehold dwelling prices have created. We expect investors will take this into consideration when conducting their due diligence on this opportunity.” continued James Cowan, National Director at Colliers.

Mr Meynell concludes, “With construction approaching completion, and a selection of items to rectify, this gives opportunity to an incoming buyer to work with Building Commission NSW to verify works, remedy all issues and deliver a product given formal sign off from a stringent regulatory authority. This will be sure to deliver confidence to any future tenants or purchasers”

The property will be sold via an on-market expressions of interest campaign closing in August 2024.

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