Boom Times At Southern End Of City

Sydney Morning Herald

Saturday August 23, 2008

Carolyn Cummins

THE rejuvenation of the southern end of the Sydney CBD will lead to significant growth in commercial and retail properties, and deals are already being done as investors get a foothold in what was once seen as the heart of the city.

The area has seen a lot of developer interest, with new residential projects such as Aspect Apartments, on the corner of Cunningham and Goulburn streets, and others including World Square, Lumiere and the Meriton Mosaic development, said Warren McCarthy, managing director of LJ Hooker.

The southern end of the city was once Sydney's commercial hub. Central station was the main transport link for people visiting the city and this triggered a building spree of other businesses such as retailers and rag traders in nearby Surry Hills.

Mr McCarthy said that the investment in this part of Sydney has increased the residential population in the area, which has led to improvements in infrastructure and facilities.

"While Sydney's CBD is not immune to market sentiment, we are still seeing fairly strong buyer interest in inner-city apartments from both property investors and owner-occupiers," Mr McCarthy said.

"The increased investment in this part of the CBD, as well as the strong demand for student accommodation, has contributed to the consistent interest in the area.

"Any new residential development in Sydney's CBD is restricted, with limited available sites remaining for redevelopment.

"The tightening of the rental market in Sydney has pushed weekly rents up, making it an easier transition for renters who are looking to become first home buyers."

But with the new residents comes increased demand for retail outlets as well as office towers to attract new workers.

There are new commercial offices, hotels such as the Medina in the former parcel post office in Railway Square, and large tracts of apartments. Colleges and student quarters are also expanding into the area and that will increase when the former CUB precinct is redeveloped by the new owner, Dr Stanley Quek's Frasers Property.

That development will see two smaller-rise commercial office blocks as well as an array of new retail outlets.

© 2008 Sydney Morning Herald

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