China’s Greenland Group to Build Sydney’s Tallest Residential Tower
Sydney’s CBD (image via Tribune International)
As Sydneysiders embrace the benefits of a high-density city, leading Chinese developer Greenland Group has secured the site to develop Sydney’s tallest residential tower.
The $600 million tower will be Greenland Group’s first Australian project and will stand at 240 metres, surpassing the 230-metre height of Sydney’s Meriton Apartments at World Square.
Greenland Group is one of the largest developing enterprises in Shanghai with construction projects covering over 65 cities in 24 provinces of China. With a skyscraper focus, three of their projects are listed among Top 10 tallest buildings all over the world.
The Sydney tower will take up half a city block at 115 Bathurst Street on the former Sydney Water Board site asthe sprawling city of Sydney’s needs to embrace sustainable high-density living according to Retail Property Association of Canada former CEO Michael Brooks.
Brooks spoke at the recent UrbanGrowth NSW conference voicing his concerns of real estate affordability in Sydney.
“Your houses are too expensive because people do not have that choice, because you do not have that density,” he said. “You do not have enough medium or high rise. You need product in the $250,000 range. “You need to get that to market. I do not care if it takes 80-storey buildings, do it.”
In speaking at the conference, Brooks pointed to the benefits of property ownership.
“People want to own their own home, they want to paint their bedrooms purple and hang pictures on the wall, they want to choose their own counter tops and have their own appliances,” he said.
Brooks noted that Sydney’s rising population is similar to that of Toronto, noting that the Canadian city – with a population of six million - is investing in smart urban planning to brace for an increase to 11.5 million by 2031. Forecasted growth for Sydney stands at a growth in population of 1.1 million to 5.3 million in 2031.
Asian investors in particular have seen extensive opportunity in luxury residential and hotel developments in Australia’s urban property market specifically in the Gold Coast, Melbourne and Sydney.
“Australia has not seen such a wave of offshore-driven development since the Japanese-led hotel, office and retail boom of the late 1980s and early 1990s,” said Kevin Stanley, former Australasian research director at global real estate group CBRE and now an adviser in real estate and urban planning. “In 55 separate projects, more than 21,000 dwellings are in feasibility and early planning through to marketing, pre-sales and construction. Site acquisitions have totalled $1 billion, and development and construction will reach more than $9 billion for projects being facilitated or financed by offshore developers.”
In a report Stanley wrote for The Property Observer, he stated that In Australia, Chinese developers have invested at least $350 million in sites nationally and are proposing projects so far of at least $1.6 billion.
Stage one of construction of Greenland Group’s tower has been approved to begin building 400 apartments over 60 levels and 11 basement levels of car parking.
The tower will have three street frontages and be located in the vicinity of Sydney’s Chinatown and Haymarket district. The area is currently being transformed to an active residential precinct with Lend Lease reshaping the Sydney Exhibition Centre and Entertainment spaces.
Greenland Group competed with renowned Australian property developer Harry Oscar to develop the heritage site with the tower estimated to generate more than $500 million in apartment sales.
There is currently another building at the site at 339 Pitt Street that Greenland Group is considering for a $75 million hotel development.