Macquarie Park, Sydney ~ set for a transformation?

Macquarie Park is located approximately 16km from Sydney’s CBD. Much has been said about the renewed vigour surrounding this suburb due to recent addition of 3 new train stations and new commercial property projects. It is also home to many new organisations taking up residence in commercial complexes. However, I remain a little skeptical for the following a few key reasons.Apartment block, Fontenoy road, Macquarie Park

Main drawbacks

  1. There are no current or foreseeable new residential developments in this suburb. There are no houses and majority of accomodation in this area consists of apartments blocks which are dated and old. Most 2 bedroom apartments in this suburb come with a single bathroom.
  2. Due to its close proximity to Macquarie University, investment units in this suburb consist mainly student accommodation with a small potential for the executive market due to new IT & T companies such as Optus relocating to this area.
  3. The new Macquarie Park train station is situated on the corner of Lane Cove and Waterloo roads. This location albeit close to some commercial complexes is a fair walk for residents along the Fontenoy and Khartoum roads area and the majority of residents on the western side of Epping road.
  4. The new Macquarie University train station will benefit apartment blocks along the south side of Herring road, Lachlan Avenue and Ivanhoe Place. However, these apartments are old and dated. Recently, there has been a spate of newly renovated apartments in this area where owners are trying to cash in with small upgrades to get out of this suburb.
  5. The new North Ryde train station on Delhi road is also in the middle of a commercial hub with little residential housing.

A newly completed block of apartments and townhouses on Waterloo road located on the north west end of Macquarie University were quickly snapped up by investors because prices were ranging between the mid $500k to $600k for a 3 bedroom apartment. At this price range, I have reservations about build quality. However, I doubt there are many owner-occupiers and most of these will be rented to groups of students who will share in paying up to $600 per week for a 3 bedroom apartment with little concern for build quality.

The capital growth statistics for this suburb have been poor and in my opinion, it is mainly due to the old and dated housing mentioned above. Rental yield is fair at 5.23% for these old housing as they are mainly supported by students. I do not foresee any significant improvement in capital growth for these apartments in the near future.

Last Words

I believe houses with good north aspects in neighbouring suburbs of North Ryde and Marsfield located on the west side of Epping road would be a better bet. Failing which, I think this is a suburb more suited for work rather than to live.

 

Vital statistics ~ Macquarie Park

Median unit price $368,000

Average annual growth 7.02%

5-year growth 0.82%

Weekly median advertised rent $370

Gross yield 5.23%

Source: Your Investment Property, July 2009

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How it’s calculated:

Median price: Median price for the 12 months to March 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to March 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to March 2009

Gross yield: Estimated rental return, based on advertised rent to median price

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