May 2017 – Northern Beaches Commercial

3 May, 2017 / Vanessa Rader and Nic George

The Northern Beaches is a highly constrained region of Sydney which is restricted in regard to land release for both residential and employment uses. Population growth has been minimal in this region in the past twenty years compared to the other regions of Sydney, over the next twenty years there is an expectation of an additional 35,000 people to reside within the Northern Beaches.

This comes from a combination of land development in the Warriewood Valley, Ingleside region together with higher rise development in suburbs such as Dee Why and other infill development opportunities. This added population will bring greater strain on the already limited Retail market and as Industrial land is constrained, limited and expensive, this will pressure continued local employment growth opportunities.

Demand to invest in these assets have been high most notably from local investors, the strong demand fundamentals for Retail and Industrial in this constrained location also sees owner occupiers seeking to shelter from possible rental increases. This coupled with the low interest rate environment has resulted in a new level of investment yield achievable, particularly in the sub $1.5million or more affordable price point.

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