Keep your head in the clouds in a property with its heart in the city

It’s hard to think of another city in the world that offers the kind of diversity and amenity that Sydney delivers. While many focus on the stunning harbour, there’s a myriad of beautiful waterways providing a connection to the natural environment while also keeping a finger on the pulse of a vibrant city centre.

This recently completed penthouse apartment on the Parramatta River in the heart of Sydney’s second major city is a perfect example of luxury living. Located in The Lennox, a 46-storey apartment building designed by Marchese Partners and JPW Architects, the property at 4602/12 Philip Street, Parramatta has four bedrooms and three bathrooms, with 3m-high ceilings adding to the sense of space and gracious comfort.

The open plan living and dining area features timber floors laid in a chevron pattern and leads onto an exceptionally well-equipped kitchen featuring Gaggenau appliances, a built-in coffee machine, a Vintec wine fridge and Zip hot and cold tap.

A generous, north east facing outdoor living area is accessible via bi-fold doors leading off the living area, offering commanding views of the surrounding area. The house-like proportions of the apartment allow for distinct sleeping and living zones, with three of the four bedrooms separated by the dedicated home office space. A fourth bedroom on the other side of the living area would be ideal for visiting guests.

In addition to the spacious apartment, the property is being sold with secure parking for three cars. There is also access to a 24-hour concierge service, as well as a 20m heated swimming pool, a fully equipped gym and a dedicated function room.

Address: 4602/12 Philip Street, Parramatta

Price guide: $4 million

Agent: Sunny Gandhi sunnyg@theagency.com.au 0421 336 689

Inspection: By appointment

Build-to-rent (BTR) residential property has emerged as one of the key sectors of interest among institutional and private high-net-worth investors across the Asia-Pacific region, according to a new report from CBRE. In a survey of 500 investors, BTR recorded the strongest uptick in interest, particularly among investors targeting value-added strategies to achieve double-digit returns.

CBRE said the residential investment sector is set to attract more capital this year, with investors in Japan, Australia and mainland China the primary markets of focus for BTR development. BTR is different from regular apartment developments because the developer or investor–owner retains the entire building for long-term rental income. Knight Frank forecasts that by 2030, about 55,000 dedicated BTR apartments will have been completed in Australia.

Knight Frank says BTR is a proven model in overseas markets and Australia is now following suit.

“Investors are gravitating toward the residential sector because of the perception that it offers the ability to adjust rental income streams more quickly than other sectors in response to high inflation,” Knight Frank explained in a BTR report published in September 2023.

The report shows Melbourne has the most BTR apartments under construction, followed by Sydney. Most of them are one and two-bedroom apartments. The BTR sector is also growing in Canberra and Perth where land costs less and apartment rental yields are among the highest in the country at 5.1 percent and 6.1 percent, respectively, according to the latest CoreLogic data.

In BTR developments, there is typically a strong lifestyle emphasis to encourage renters to stay as long as possible. Developments often have proactive maintenance programs, concierges, add-on cleaning services for tenants, and amenities such as a gym, pool, yoga room, cinema, communal working spaces and outdoor barbecue and dining areas.

Some blocks allow tenants to switch apartments as their space needs change, many are pet-friendly and some even run social events for residents. However, such amenities and services can result in BTR properties being expensive to rent. Some developers and investors have been given subsidies to reserve a portion of BTR apartments as ‘affordable homes’ for local essential services workers.

Ray White chief economist Nerida Conisbee says Australian BTR is a long way behind the United States, where five percent of the country’s rental supply is owned by large companies. She says BTR is Australia’s “best bet” to raise rental supply amid today’s chronic shortage that has seen vacancy rates drop below 1% nationwide and rents skyrocket 40% over the past four years.

Nerida Conisbee says the BTR market is Australia’s ‘best bet’ for addressing the housing crisis.

Ms Conisbee says 84 percent of Australian rental homes are owned by private landlords, typically mum and dad investors, and nine percent are owned by governments. “With Australia currently in the midst of a rental crisis, the question of who provides rental properties needs to be considered,” Ms Conisbee said. “We have relied heavily on private landlords for almost all our rental properties but we may not be able to so readily in the future.” She points out that large companies can access and manage debt more easily than private landlords when interest rates are high.

The CBRE report shows that Asia-Pacific investors are also interested in other types of residential properties. These include student accommodation, particularly in high migration markets like Australia, and retirement communities in markets with ageing populations, such as Japan and Korea. Most Asia Pacific investors said they intended to increase or keep their real estate allocations the same this year, with more than 50 percent of Australian respondents intending to invest more.

Keep your head in the clouds in a property with its heart in the city

The house-like proportions at an exceptional vantage point make this apartment a once-in-a-lifetime opportunity for families set on luxury

Savvy high net worth players from Australia and Asia are getting on board as the residential landscape shifts