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11 Dec 2020

Billions of Dollars in New Building Projects Are a Positive Sign for the Construction Industry in Sydney, Analysts Claim

Billions of Dollars in New Building Projects Are a Positive Sign for the Construction Industry in Sydney, Analysts Claim

Last year, amid worries about the construction industry, large projects worth billions of dollars in and around Sydney were given the green light.

And while some analysts expect a sluggish 2021 in the sector, expectations are strong for the coming years in the midst of unpredictable economic conditions.

Non-residential construction works such as stores, offices and commercial space are projected by the Master Builders Association to decrease by around 18 percent in this financial year.

But Chief Economist Shane Garrett claims that the long-term sustainability of the projects "is pretty secure"

"They will reach their completion stage in a fairly healthy economic environment which is moving in the right direction at a fast pace.

Here are some of the major developments that have been given the green light.

CBD developments
1. 55 Pitt Street, Sydney

A new 50-storey commercial office tower over a 45-metre podium on the corner of Pitt Street and Dalley Street in Sydney CBD, two blocks from Circular Quay, is included in this $500 million Mirvac development. 

It includes new commercial floor space of 70,950 square meters in a tower reaching up to 232 m. It will see the demolition of a mid-century commercial office building on nine floors and major changes to the nearby Ausgrid and Telstra utility buildings in order to "improve their aesthetics and deliver new retail opportunities".

A final design from a competitive design phase is likely to be adopted.

2. 65-77 Market Street, Sydney

This building is a 32-storey mixed use residential and commercial tower in the heart of the CBD, a $295.9 million project suggested by Scentre Group and Cbus Property.

The block, owned by David Jones Properties, is situated in the shadow of Sydney Tower, between Pitt Street and Castlereagh Street.

FJMT Studio architects won the competitive design process for the "unique" and "understated" style of its blueprint in November.

To build an atrium for the new development, the project will see the partial internal demolition of the current 1938 David Jones heritage-listed department store. It includes plans for 13 units with one bedroom, 56 units with two bedrooms, 29 units with three bedrooms and five units with four bedrooms.

3. 169-183 Liverpool Street, Sydney 

Shimao Group Holdings Limited's planned $244.4 million development will see the demolition of an existing commercial tower immediately south of Hyde Park and the ANZAC War Memorial, in order to make room for two new residential towers. 

The 35 and 37-storey buildings are intended to accommodate up to 237 apartments in total. Owned by Sicard Pty Ltd, by creating a gap between the two buildings, the construction would "conserve the heritage significance of the ANZAC War Memorial and Hyde Park" giving tourists a clear view of the sky. 

Via a competitive process, a final design proposal is likely to be chosen.

4. 133-141 Liverpool Street, Sydney

The trustee of the Roman Catholic Church owns this block, on the corner of Liverpool Street and Castlereagh Street and opposite the Downing Centre.

To make room for a 70-level high-rise to hit 234m, it is preparing to knock down an existing 113m commercial tower.

The $161.6 million project will include open commercial and communal spaces and up to 227 apartments for residential use.

5. 187 Thomas Street, Haymarket

The site is situated about 200 meters from Central Station, at the intersection of Thomas Street and Valentine Street. 

The plan of Greaton Development will see the construction of a new 206 m hybrid tower, with around 50,000 square meters of floor space, built to accommodate a mixture of tenants through innovation, education, jobs and tourism. 

It would add to the availability of "large floor plate commercial floor space" in the area. To make way for the major construction, an existing 10-storey commercial office building will be demolished. It is soon expected that a design competition for the project will begin.

6. 93-97 Macquarie Street, Sydney

A renovation of an existing heritage-listed Health Department building owned by Sir Stamford at Circular Quay will see this $135.1 million initiative by developer Oakstand. It is one block from Circular Quay's eastern side, opposite the Royal Botanic Garden. Although a tower would appear above and behind the building, it would retain heritage features, including the current exterior. A new 16-storey tower, containing new commercial and residential space, will reach up to 55m.

7. 94-104 Epsom Road, Zetland

This $108.3 million plan comprises three buildings ranging in height from four to 13 floors and will hold 271 residential apartments, plus up to 184 car parking spaces and business premises. Although the property is currently owned by the City of Sydney Council, developer Karimbla Properties will buy it. 

As the winner of the competitive design process, SJB was chosen.

8. 371-375 Pitt Street, Sydney

Sydney Redevelopments 1 Pty Ltd, the owner and developer, is investing $80.4 million to build a 34-storey hotel and commercial development. 

304 hotel rooms and associated services, as well as one retail tenancy, will make way for the demolition of existing buildings as well as excavation and remediation.

9. 477 Pitt Street, Haymarket

The owner ISPT Pty Ltd plans to turn an existing commercial asset, costing $71.6 million, into a "enlivened contemporary workplace for a technology focused community"

The redesign of an existing 31-storey office tower, lobby and associated retrial spaces will be included.

Works include the demolition of the current facade and the renovation of existing heritage sites, including the construction of the Australian Gaslight Co, the Fire Station and the building of the Manse.

10. Central Station

Atlassian, a tech giant, plans to construct a 40-storey skyscraper building at a cost of $1 billion next to Central Station.

The hybrid timber tower will be part of the "Tech Central" allotted and sponsored by the NSW Government, which will extend from Central to Camperdown.

The new Australian headquarters of Atlassian will sit above YHA Central Railway Square and house about 4,000 employees. It is hoped that construction will begin this year and will be finished in 2025.

11. Martin Place

Two new commercial buildings at either entrance to the station will be part of the new Martin Place metro precinct.

A 39-storey commercial tower will rise above the financial district at the northern entrance of the station, while a 28-storey building at the other end will be built.

The two new towers will be constructed at the same time as the underground station is being built.

In 2024, the metro station is due to open.

Other Sydney developments
12. 29-33 Oxford Street, Epping

A small school and church complex owned by the trustee of the Catholic Church will see this $181.5 million development and be converted into a 29-storey mixed use tower with a nursing facility, primary school, and senior living center.

Developer Stockland's high-rise development includes a 132-bed residential care center, 205 separate senior living units, four church presbytery units, ancillary stores, a two-to-three-floor church hall, a two-to-three-floor primary school building, and a basement with 372 parking lots.

Both buildings on the site, except the present church that would be incorporated for its heritage value, would be demolished.

13. 160 Hawkesbury Road, Westmead

The location, owned by the Western Sydney University, is situated directly opposite Westmead Hospital, and Westmead Train Station is 400 metres away by foot. 

The blueprint will see a complex of residential buildings ranging from 8 to 24 floors in height and containing a total of up to 556 apartments. In the $168.2 million project, being built by Combine Projects Westmead, a total of 654 parking spaces are expected to be made available.

14. 659 Victoria Road, Melrose Park

Payce and owner Tyriel Developers' $166.7 million construction involves a square shaped complex with four towers up to 11 storeys high and two towers up to 12 storeys high.

412 residential units, a supermarket, convenience stores and three car park basement levels will be included.