Investor confidence returns to Western Sydney

Retail asset and development site sales were bolstered by investor confidence as more than US$120 million worth of properties were sold in Western Sydney this year by the CB Richard Ellis’ Parramatta Metro team.

CBRE Associate Director Harry Bui said as bank lending criteria began to ease in 2010, local investors had moved to capitalize on the stronger market fundamentals in the area.

“We have definitely experienced an increase in buyer activity and levels of enquiry for retail assets, when compared with the previous year,” Bui said. “Our biggest auction result for 2010 was the acquisition of the Cabramatta City Center for $18.1 million at a tight initial yield of 5.7 percent by a private Asian syndicate in October 2010.”

“Asian investment syndicates and high net worth individuals have been especially active in the western Sydney investment market over the year.”

Bui added that the five retail investments sold in Beamish Street, Campsie for just under $6 million was an example of investor demand for retail assets in western Sydney. Returning market confidence enabled local developers to re-enter the market during 2010 after a period of slow growth.

A striking example of this was the recent sale of an 11 hectare residential development site in Catherine Field formerly owned by Sekisui House Australia, a subsidiary of Japan’s premier home builders. The site was bought by a local developer for $6.2 million through CBRE’s Frank Oliveri and Peter Vines last month.