Sydney continues to be at the top of the list for international capital seeking prime real estate – particularly from China, Singapore and Malaysia. This is fuelled by significant investment into infrastructure, strong population growth, booming education and tourism sectors.

While there is much emphasis on Asian investment, Sydney’s local buyer market makes up a significant portion of end-purchasers for freestanding buildings, and according to Savills Australia, over the last 18 months. 5 out of 10 freehold transactions in the Sydney city fringe with a value of $10 million+ were sold to local buyers.

According to Tom Tuxworth, State Director – NSW Metropolitan Sales at Savills Australia, the Sydney city fringe has 1,900 freestanding buildings of values between $1–50 million.

“Throughout 2018 many owners sold their assets for a number of reasons including strong rental demand and record capital growth being achieved. The increase in values can be attributed to, in part, record low interest rates and a surplus of global capital flowing into Sydney over the last few years.

“With stock supply reduced in 2018, demand and competition was and continues to intensify which resulted in record-breaking prices in the city fringe. However, in the New Year we have seen a resurgence in Asian capital and active offshore buyers looking to secure prime investment stock.

One asset set to make a splash in the market is 18 City Road, Chippendale, an exceptionally placed property with incredible fundamentals, future development upside and in one of Sydney’s most sought-after prime city fringe locations.

“Competition between local and offshore, in particular Asian investors and developers will be fierce” said Mr Tuxworth, who is exclusively selling the property with colleagues David Hickey, Executive, NSW Metro Sales and Jacey Lee, Senior Manager- Asian Services of Savills Australia.

Perfectly located in one of Sydney’s most coveted commercial locations, 18 City Road is just 2.4km from the Sydney CBD and boasts prime City Road frontage, favourable B4 zoning allowing mixed-use and student accommodation development, potential to strata subdivide (STCA), dual street frontage with excellent exposure and is right on the door step of Sydney’s most iconic retail strips and within 1km of top Australian universities UTS, Sydney University and Notre Dame.

Mr Hickey said this rare, two level, mixed-use freehold corner investment on a 259sq m site offers a diverse tenant mix with strong annual income and its substantial existing improvements provide a benchmark value as well as a number of alternative uses for the building, such as a student accommodation development, mixed-use development, retail, strata office opportunity or simply a secure, trophy investment.

“This is a prominent, highly sought-after and strategic location within the booming City fringe and fast developing cosmopolitan suburb of Chippendale.

“We expect interest from owner-occupiers, local and offshore Investors, student accommodation developers, mixed-use developers and value add investors” said Mr Hickey.