Suburb Spotlight Jordan Springs, Sydney
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Jordan Springs Overview Jordan Springs is a new $600 million fully serviced Lend Lease master planned community located just 7 km from Penrith City Centre and 30 minutes west of the Parramatta CBD. In 2014 Jordan Springs was awarded the Best Master planned Community Award by the UDIA. About 90 Custodians have purchased in the Jordan Springs locality in the years 2012, 2013 and 2014. Early on, Custodian identified Jordan Springs as an area with the potential for significant capital growth. In addition to the strong market fundamentals underpinning the Sydney market, Jordan Springs ticked all the boxes: • Developed by the large national developer Lend Lease Group. • Abundance of local employment opportunites. • Accessibility to Penrith Train Station, the M4 Motorway and Great Western Highway. • The staggering development and infrastructure pipeline. • Top quality public and private schools.
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ver 90 Custodians O have purchased in Jordan Springs. ALL have experienced capital growth in the vicinity of $100,000-$150,000 in just three years.
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It is understood that each Custodian within the Jordan Springs locality has experienced uplift of $100,000- $150,000 in Capital Gains. Assuming that 10% deposits were made, they have all doubled or tripled their initial cash investments in just 3-4 years.
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Buy Land for Capital Growth True to the ‘7 Steps to Wealth’ model, the land component of your property investment is what appreciates in value. Custodians who purchased in Jordan Springs in 2011 have seen capital increases of $100,000$150,000 with the bulk of their returns coming from the land component of their investments. On a dollar per square metre basis the story is just as compelling. There is no doubt that the Custodian clients who purchased in Jordan Springs have timed the markets well. However, property is a long-term game and clients need to be thinking about how they can best use their equity gains to further build their portfolios. Diversification, with several properties across various geographical locations and sub markets, is a good strategy for shielding your portfolio from cyclical downturns and creating consistent long term returns.
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These capital gains have been supported by recent Mortgage Security Valuations undertaken by bankassigned valuers. These favourable valuations are allowing Custodian clients to access their equity and ultimately duplicate into the next property on their portfolio building journey.
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Recent Comparable Land Sales in Jordan Springs
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Custodians purchasing in Jordan Springs did so at around the $500-$600 per square metre mark. Sales (lots quarter) the $1,000 Releases per quarter) Current transactions areper pushing per(lots square metre mark. Closing Stock (lots end quarter) Sale price Date
Address
Area
$/m2
120 Greenwood Pkwy
10/03/2015
$375,000
503
$745.53
28 Fishburrn St
23/12/2014
$299,999
313
$958.46
Greenfield growth area lot sales, lots released to the market, 24 closing Neptune St at the end of the quarter 23/01/2015 $299,850 423 $708.87 and stock Source: NLSP “State of The Land Report 2015” The Urban Development Institute of Australia In the recent highlights how the average dollar per square metre for land in Sydney has increased dramatically as the average lot sizes decrease and average lot prices increases. Illustrated below:
Median Land Price and Size Median Land Price and Size
Median Land Price and Size
y in 30% of make re viable :
ment ure. em should
very s by
ls to nditure.
Source: NLSP
Sydney Lot Production Quarterly MarketGreenfield Activity Year
Lots Year Released End Stock
Median Median Lot Size Price ($) (m²)
Per m² land price
2009
2503
1076
520
$269,000
$518
2010
3526
1266
524
$293,500
$560
2011
3890
1449
498
$294,500
$592
2012
Sales (lots per quarter) 4640 1870
Releases (lots per quarter) 508 $295,000
$580
2013
6690
2014
8597
Closing Stock (lots end quarter)
494
509
$323,500
$636
342
450
$339,750
$755
Source: NLSP
INFILL PERFORMANCE
UDIA NSW, through its Land has prepared forecasts base development industry partic
UDIA’s forecasts show a ma in the next five years with S production targets identified to 1% in 2014/15 and 24%
The NSW Government has a Greater Sydney Commission with steering delivery of A P The objectives, charter, mem Commission will be vital to be defined in a transparent key stakeholders in NSW or for meaning and support. It
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Comparable Sales History When assessing your capacity to expand your portfolio, the banks will engage valuers to estimate the ‘fair market value’ of your property. These valuations are conducted using sales evidence of recently transacted properties. In 2015, Jordan Springs has seen some quite favourable sales comparable to Custodian stock. These encouraging sales are characteristic of the booming nature of the Sydney residential market and are advantageous to your property valuation. Examples of recent sales in Jordan Springs are below:
20 Bonney Crescent, Jordan Springs Area: 375 m2 Price: $609,000 Sale Date: 1 April 2015
5 Nottingham Street, Jordan Springs Area: 450 m2 Price: $720,000 Sale Date: 18 March 2015
19 Cordyline Loop, Jordan Springs Area: 375 m2 Price: $650,000 Sale Date: 13 February
All information is current and accurate as at April 2015.
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Request Your Complimentary Personal Property Portfolio Review To find out about what this means for your investment and to hear about the latest exciting new Custodian investment opportunities, please contact our team of property experts for your own personal ‘Property Portfolio Review’ on:
Phone: 1800 174 999 Email: service@custodian.com.au
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PO Box 2256 Nerang, MDC, Queensland 4211 1800 174 999 service@custodian.com.au www.custodian.com.au