In 2014 Domain reported on a different group of neighbours in Castle Hill who teamed up to sell to a developer.
- Castle Hill ‘megalot’ property sale to reap $100 million
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- Castle Hill neighbours band together to secure multimillion-dollar sale
Neighbours in Sydney’s north-west are becoming more than good friends – they’re turning into millionaires, as developers shell out tens of millions for their homes.
The latest of these sales – a lot of eight stand-alone houses in Castle Hill – has potentially secured each owner up to 10 times what they originally paid for their homes.
The site, which included 6 to 12 Middleton Avenue, 4 and 6 Fishburn Crescent, and 29 and 31 Sexton Avenue, spans 7454 square metres and was sold during an expressions of interest campaign to a local developer.
Rezoning has been a buzzword in Castle Hill and surrounding suburbs, with home owners in these lucrative areas making big profits. Photo: CBRE
While the sale price was undisclosed, similar sites have sold for $35 million to $40 million and Domain understands the sale price was within this bracket. Split evenly this would leave each owner with $5 million a piece.
The properties were sold by a team of CBRE agents, including Richard Gell, who marketed the property as a “premier” option for developers due to the future R4 High Density Residential zoning. Up to 250 apartments could be built on the site, to a height of 40 metres.
The Hills has long been known as the Garden Shire, but it can’t retain its garden status forever.Jacque Parker, House Search Australia
The site, in the Hills District’s Showground Station Precinct, will be just 80 metres away from the future train station, Mr Gell said.
The eight houses on three different streets have the potential to be developed into 250 apartments. Photo: CBRE
“The Castle Hill residential apartment market continues to perform well, so we expected to see significant interest in Premier. Strong sales prices and sale rates have recently been achieved for off-the-plan apartment sales due to low supply levels,” he said.
“Castle Hill’s proximity to the Norwest Business Park, Castle Towers shopping centre, reputable schools and transport hubs makes for a strong residential market and as a result a secure investment opportunity for the purchaser.”
Sales prices are far higher than could have been achieved selling to another home buyer.
One of the Castle Hill homes up for redevelopment. Photo: Google
For instance, one of the Middleton Avenue property owners bought in 2002 for $539,000 – now they’ve likely achieved up to $5 million for their home.
It probably would have sold for far less to a home buyer. The latest sale on that road, not part of the development site, was 49 Middleton Avenue. It was bought for $1.8 million in December 2015 and for $580,000 in 2005.
The median house price in Castle Hill is $1,425,000, according to Domain Group data. The highest sale in the past 12 months for an individual house was $3,082,500.
Chris Johnson, chief executive of developer lobby group Urban Taskforce, said debate had raged about whether some of the capital growth cashed in by vendors as a result of rezoning should go into contributing funds for local projects.
“But there has to be enough incentive for people to get together to make it happen. Even if it’s double the price [the owner paid for the home], it’s not going to be enough to get people to want to move out and have their home redeveloped … there has to be a reasonable return,” Mr Johnson said.
Entry level prices in Castle Hill are $1 million to $1.2 million for a townhouse, with most standout sales a result of high-density zoning, said Jacque Parker, a Hills District resident and director of House Search Australia.
“The impact of the developments will be intense but it’s long overdue,” Ms Parker said.
“The Hills has long been known as the Garden Shire, but it can’t retain its garden status forever. The way we lived compared to 20 years ago is changing.”
She said the suburb was likely to become more like Chatswood or Hornsby as it shaped itself into a major centre.
First National Hills Direct sales executive Sanjeev Kumar said developers were “targeting” the area for the new train line, including Norwest and Cudgegong Road Station, and the shopping centres.
“The Hills District is changing. In the North West Growth Centres, lots are getting smaller and the quantity of units in Council waiting for approval has risen,” Mr Kumar said.
“Part of this is because units and smaller lots are more affordable, and thus easier to sell. When your product is popular and in demand, the risk for the developer is reduced.”
He expects there will be consistent interest in the Hills District over 2017.
Century 21 Castle Hill principal Jane Booty said Castle Hill had a “perfect storm” of the North West Rail Link and rezonings around these areas, and an increase in transport and infrastructure such as upgraded roads and the extension of Castle Towers, in addition to the good lifestyle and sensational schools. “All of these factors are leading to the popularity of The Hills and the expected increase in population,” Ms Booty said.
“I expect that once the gazettal has occurred the sale of the new developments will take place at a steady rate due to the interest from locals and out-of-area buyers.”