Sydney’s skyline will get a makeover when a number of landmark office towers get knocked down to accommodate the city’s local, multi-residential construction boom thanks largely in part to international investors. From the rubble, new luxury apartments and hotels will be developed.
Investors from Singapore and China are plugging the most money out of all overseas investors into Australian hotel and apartment developments in an aim to turn old office spaces into new, vibrant multi-residential, vertical communities within the Sydney CBD. Over 18 of Sydney’s biggest office towers will be targeted.
Gold Fields House upgrade to the tune of $1 billion
Former Coca-Cola Amatil building at Circular Quay
Ausgrid Tower at 570 George St
Other New Sydney Construction Projects Underway
Packer's $2 billion hotel and casino complex towards the end of the famous ‘Hungry Mile’ at Barangaroo will include 66 private, luxury residences.
The $6 billion commercial, retail and residential towers project at Barangaroo.
How Much CBD Space Has Been Bought?
Over $1 billion worth of stock was bought up in the Sydney CBD by late 2014 (most of it by international investors) adding up to about 325,000 square metres of office space. This purchased office space will be redeveloped by international investors, or converted into entirely new apartments and/or hotel premises.
Due to existing leases however, industry research company, BIZ Shrapnel believe only about 130,000 square meters of this total purchased property will be affected in the near future. No further conversions can take place until the current leases are up.
These international investors may be onto a winning idea as previous market indicators show the tourism and accommodation sector is bouncing back slowly. In 2014, Sydney achieved an average of 87% hotel occupancy (beating Melbourne by just 1%), the highest nationally. Now some industry insiders are predicting hotel occupancy will shoot up to 90% on average by 2017 and Australia will experience a tourism boom within 5 to 10 years.