Investors cash in on Crows Nest

Thursday 21 February 2019

The popular residential and commercial hub of Sydney’s Crows Nest has quickly become one of the most sought-after investment destinations across the Lower North Shore, according to CI Australia.

Its excellent long-term growth prospects, stimulated by the proposed Crows Nest Metro Station, associated infrastructure and substantial mixed-use developments rejuvenating the Pacific Highway, are key reasons for the continued attraction of buyers, which include High Net Worth Individuals and private investors. The proximity and accessibility of Crows Nest to the Sydney CBD and surrounding St Leonards and North Sydney add to its proposition further.

The Crows Nest commercial property market is seen as mature and is presenting a compelling offering for buyers, including that it offers freehold property investment opportunities at an entry level price point, compared with the Sydney CBD, North Sydney and St Leonards,” said Nick Lowry, CI Australia’s Associate Director of Investment Sales for the North Shore.

“We continue to see substantial investor demand in the precinct, and this is heavily outweighing the number of willing sellers. Some owners have even sold only parts of their holdings to take advantage of the apparent capital gains, whilst keeping a foothold in the market given the exciting developments. Furthermore, while Crows Nest has provided stable returns for landlords for some time, the expectation that rents and capital values are likely to increase is ensuring fierce competition,” Mr Lowry added.

CI Australia’s recent off market sale of 72 – 72A Willoughby Road, Crows Nest, located less than 100 metres from the proposed Metro Station, was competitively bid for and sold to a private investor for $4.75 Million. This reflected a yield of 3.5% Net for the property; a strong result Mr Lowry believes, given broader market conditions.

Prior to this, CI Australia also sold 54 Alexander Street, Crows Nest, for $6.4 Million, representing a yield of 3.75% Net. The asset was an 800 square metre, three-level retail and office building which returned income of approximately $240,000 Net + GST. The recent sale of Roth House for above $10 million for a 4% Net yield also demonstrates the strength of this market.

Of the sales of 54 Alexander Street and 72-72A Willoughby Road Crows Nest, Mr Lowry said, “Both properties were acquired by private investors that had commercial assets recently acquired by Government bodies. Allowances such as delayed stamp duty are also seeing some purchasers able to be more competitive than the rest of the market.”

The key commercial areas in the Crows Nest precinct are located on Alexander Street, Clarke Street & Hume Lane. Its popular retail precinct is around the high-street retail strip of Willoughby Road, which comprises an eclectic mix of cafes, restaurants, wine bars and specialty retailers. Many of its retail freeholds are owned by local investors who are now looking to sell to take advantage of strong capital gains. It is also supported by supermarket giants Woolworths and Coles, the latter which is under construction, and four council car parks.

Crows Nest Properties_CI Australia

L-R: 54 Alexander Street; 72-72A Willoughby Road Crows Nest

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