Roseville headlines 2012 Sydney unit hotspots, and Ryde makes another appearance

The upper north shore Sydney suburb of Roseville, famous for its historic Federation-era homes, has been named as one of five Sydney unit hotspot markets by PRDnationwide. 

Roseville, 12 kilometres from the Sydney CBD in the Ku-ring-gai municipality, is just north of the transport and shopping hub of Chatswood and is now the focus of developers following controversial changes to zoning rules over the last few years. 

PRDnationwide’s NSW research analyst Oded Reuveni Etzioni, who compiled the list, notes that Roseville is a “leafy suburb which was historically dominated by detached houses, [but that] changes to zoning laws have led to the consolidation of lots into apartment complexes”. 

“These augment the existing stock of mostly older-style apartments located on both sides of the Pacific Highway. The location of Roseville near shopping and recreation destinations makes it an ideal investment in 2012 for those who seek a long-term capital appreciation,” he adds. 

However, the development and construction of new apartment projects is likely to slow down following a decision in April last year by the O’Farrell NSW state government to return full planning approval for new developments to the Ku-ring-gai council and putting an end to  the previous state government’s fast-track planning panel, which aimed to approve developments within 90 days. 

During the past five years more than 6,000 new apartments have been approved or began construction Ku-rin-gai suburbs and before the changes, residents feared up to 15,000 apartments could be built in Ku-rin-gai. 

According to PRDnationwide, Roseville has a median unit price of $546,000.

Research compiled by RP Data shows that Roseville unit prices are up 54% over the past five years to a median of $733,000, ranking it third behind Greenwich and Birchgrove for greatest capital appreciation over this period.

Source PRDnationwide

The other Sydney suburbs on the unit hotspot list are Abbotsford in the inner west, Kogarah in the St George region, Ryde to the north west and Balgowlah on the northern beaches.

According to Reuveni Etzioni, contemporary townhouses and luxury waterfront residences in Abbotsford have created upwards pressure on the median unit price complementing the existing stock of “’70s and ’80s walk-ups”.

He says a softer market over 2011 cooled the market, allowing buyers a more affordable entry point.

Kogarah’s potential as a unit hotspot is based on two key fundamentals: transport and amenities.

“Serviced by the Princes Highway and the Illawarra railway line, the suburb offers its residents easy access to Sydney, the Sutherland Shire and Wollongong. The Kogarah Town Square, located in the centre of the suburb, is a refurbished and lively shopping precinct adjacent to the train station,” says Reuveni Etzioni.

PRDnationwide also picked Ryde as a unit hotspot because of the suburb’s central location on the intersection of Victoria and Lane Cove roads and proximity to the employment hubs of Meadowbank and Macquarie Park.

“New development in Meadowbank will see more residential apartments being built on old industrial land and the Ryde town centre redevelopment is set to increase the amenity of area,” says Reuveni Etzioni.

Balgowlah gets the nod due to increasing retail and residential investment.

“Existing shopping facilities in Warringah Mall and Stockland Village will be complemented by a new Woolworths supermarket and Bunnings warehouse,” says Reuveni Etzioni.

“Balgowlah and surrounding suburbs have seen stock selling at higher price brackets due to new residential developments in the area. There are still opportunities in the lower price brackets for owner occupiers and investors seeking to invest in the suburb.”