Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Saturday, 22 February 2014

A glimpse into Sydney's future...Central Park

I thought today I'd take a wander across the road from my joint to see what's going down at the new Living Mall at Central Park Sydney.

Central Park is a $2 billion, 6 hectare mixed-use urban village, and new development will bring a couple of thousand new apartments to Chippendale when all is completed. 

Work began way back in early 2010, and the first three residential developments to come online are: One Central Park, Park Lane and The Mark.

For the purposes of comparison (if, like me, you don't know what a hectare actually is) Barangaroo is a 22 hectare site, of which around 6 hectares will be parkland.

It all seems a bit spooky at the moment, since much of the new residential development remains under construction. 

Many of the mall shops are now open - presumably paying peppercorn or introductory rents - but there are very few actual customers.

Chippendale is currently a popular student area, but the proximity to the city is likely to attract professional types as well over time.

A wander through the food court showed the choices on offer to be: Chinese, Indonesian, Thai, Indian, Japanese, Taiwanese...or more Indonesian or more Chinese (I opted for a Tandoori lunch, of course). 

You could easily be forgiven for thinking you were in a shopping centre in Singapore or Hong Kong, which, unfortunately for someone with extremely itchy feet, only gets me daydreaming about living in Asia again. 

This available culinary choices reflect the changing demographic of Sydney, as immigration policy increasingly now reflect where Australia is located in the world. 

The Central Park area is a classic example of a brownfield site (formerly a brewery) being regenerated for residential use.

Based on what I've seen, I like it, and it's definitely a major improvement for the formerly shabby Broadway strip.

Over the next few years, property market commentary is quite likely to shift to discussing "oversupply" - just as is now happening in Brisbane, Melbourne and Perth CBD areas.

It's worth noting, however, that any forthcoming oversupply is most likely to be localised, such as in the City itself and in areas where massive redevelopment will occur (for example, in the inner south).