A luxury-building boom has ignited renewed interest in a suburb that seems to have everything going for it.
Bondi Junction might once have been considered Bondi Beach’s poor cousin but it’s now full steam ahead for an apartments boom after home buyers snapped up 90 of the 93 new apartments in a new building on the first weekend of its release.
Project marketers say the shock off-the-plan near-sellout last weekend of the 20-storey tower Capitol is an encouraging sign for two more major blocks – one 21-storey tower from Leighton and the other 19-storey tower from Lindsay Bennelong, which are before Waverley Council.
Half the Capitol buyers were local investors, with some planning to move in later. Most one-bedders (priced from $495,000-$770,000) will attract yields of between 5 per cent and 6 per cent. And owner-occupiers in two-bedders (from $950,000) and three-bedders (from $1.2 million) will enjoy sweeping views of the city skyline and harbour when the project is complete in mid-2015. ”It was an incredible result,” says Tim Rees of Capitol’s agents, CBRE. ”It shows how much pent-up demand there is for good-quality new apartments at Bondi Junction. I imagine everyone will now be heading there and we’ll see a real rejuvenation of Bondi Junction. The area hasn’t had any high-quality new residential accommodation in five or six years, but now we’re seeing the start, with plenty more to come.”
The appeal of Bondi Junction for developers and home buyers is obvious. As one of only three areas in the eastern suburbs with its own train station, and a bus interchange that more than 39,000 people use every day, it’s a transport hub, while still being close to the beach and Centennial Park.
It also has some of the best shopping in Sydney. Waverley mayor Sally Betts says the Westfield shopping centre is a huge drawcard, as well as the smaller shopping centres and more boutique stores. ”Our Westfield visitation is over 58,000 people a day, and we’re certainly seeing a lot of change,” she says.
High life: An artist’s impression of the $3.9 million penthouse, one of the three apartments still available in the 93-unit Capitol building.
”We’ve rezoned some areas from commercial to mixed-use development, which is having an effect, we have a project to turn our streets and buildings into places with a real identity and we have long-term plans to make a couple of streets more pedestrian- and cycle-friendly. And eventually, we’d like to bring back light rail to Bondi Junction to go to the beach … We’d like to see it the best regional centre in NSW.”
All that activity has given Bondi Junction a big dose of ”Sydney fever”, says Australian Property Monitors senior economist Dr Andrew Wilson.
”Bondi Junction has always been popular with buyers because it’s so well served by infrastructure, and it’s so close to glorious beaches,” he says. ”But now there’s additional light at the end of the rail tunnel with the prospect of new high-rise stock coming on to the market.”
RP Data senior research analyst Cameron Kusher also feels that future prospects for Bondi Junction look good. ”Growth over the past 10 years has been fairly moderate, but the suburb is well located and much more affordable than most surrounding suburbs,” he says. ”It’s certainly seen a pick-up in house price growth over the past year.”
Developers see huge potential and believe buyers’ interest will only grow. ”I’ve lived here most of my life,” says Elia Leis of Stargate Property Group, which built the 126-apartment The Forum.
”I love living here,” Leis says. ”It’s close to everything you need, it’s easy to get to the city and the beaches, there’s great shopping and an increasing number of good cafes and restaurants. Why wouldn’t people want to live here?”
High life: An artist’s impression of the $3.9 million penthouse, one of the three apartments still available in the 93-unit Capitol building.
The first major new development at Bondi Junction in about 20 years, the 20-storey, 93-apartment Capitol has shown just how popular the area is to new-home buyers.
Designed by architectural firm Dickson Rothschild, it will offer sweeping views over the harbour and of the city skyline. The building’s facade is of curved glass, with sandstone at its base and a timber-slatted awning over the base-level retail area.
”This really is a great site, just 150 metres to the train station, 100 metres away from the bus station, Bondi Beach five minutes away and Centennial Park just a nice bike ride away,” says Mark Maryska, project director from developer Legacy Property. ”And many of the apartments will have beautiful views.
”Bondi Junction underwent a lot of change in the 1990s with a lot of Meriton redevelopment and it’s looking a bit tired. But now there’s a lot more change happening with quality apartments, plans to upgrade areas around Oxford Street and revitalisation with other developments possibly going ahead.”
Capitol, Maryska believes, will provide a benchmark for the future, however. With interiors designed by BKH, there will be Carrara marble in the bathrooms and kitchens, Miele appliances, custom-made carpet and details such as timber-veneer shelves. One-bedders started at $495,000; two-bedders at $950,000.
Only three apartments remain for sale: a three-bedder (112 square metres) at $1.85 million, and two penthouses (187-198 square metres) from $3.75 million. capitolbondi.com.au.
