If you build it, the buyers will come

The undeniable truth evident from the debate about Barangaroo and the proposed 191 metre luxury apartment development at Circular Quay, is that Harbour views are still in hot demand and demanding top dollar.

So is there a chance that oversupply will impact the investment returns of harbourfront properties? 

I don’t think so.

You don’t have to be Einstein to realise that a premium is guaranteed for properties with views of the water. But from my experience there is also strong demand for harbourside properties that don’t offer water views.  For many buyers ‘near enough is good enough’.   

At Woollomoolloo Wharf prices for apartments on the east side of the wharf are on average slightly lower than those on the west but demand for both is still healthy.  Some buyers prefer the more protected aspect offered by the east facing properties knowing they still have the harbour at their front door.

Interestingly in a number of the harbourside developments managed by Morton & Morton we have seen a trend emerging of people opting to ‘try before they buy’.  Over the last 12 months we have we had five sales of Wharf apartments by buyers who were previously tenants in the building. 

And post the GFC the demand for corporate rental properties is definitely on the rise.

I often deal with relocation companies looking to find the ideal home for international corporate clients.  One of the main criteria in that prestige leasing market is harbour views which is why vacancy rates for apartments in Macquarie Street, Woolloomooloo Wharf and Jacksons Landing remain low.

People want to be as close as possible to the amazing and unique view that is Sydney Harbour. To also have the buzz of the CBD within easy walking distance is a bonus.  So in my opinion, to quote a Kevin Costner movie slightly out of context…’if you build it the buyers will come’.