$600 million Parramatta development approved for ‘neglected’ Western Sydney site

Artists impression of the $600m development project in Western Sydney.

A $600m development in Western Sydney has been approved by the NSW government after the application was fast tracked.

Urban Property Group’s plan to build a state-of-the-art mixed use development in Parramatta was approved by the Department of Planning, Housing and Infrastructure.

The approval was for a dual tower arrangement that includes a 48-storey Built To Rent (BTR) residential building and a 38-storey commercial building.

The residential building will host approximately 350 apartments and luxury facilities, including a rooftop pool and a cinema. The second tower includes 33,164sqm for commercial office and retail use.

Situated between Argyle and Fitzwilliam streets, the sprawling site offers Urban Property plenty of scope for development after it was acquired from Transport NSW last year.

Urban Property’s chief executive officer Patrick Elias said the “neglected” Parramatta site was ripe for a transformation.

“Our ambition for Parramatta is to redefine what’s possible within the BTR sector, seamlessly weaving together retail convenience and commercial spaces,” Mr Elias said.

Artists impression of $600m development project in Western Sydney

“We’re charged with enthusiasm to rejuvenate this neglected space, injecting life and vibrancy into the southern side of the Parramatta train station. This project isn’t just about construction; it’s about creating a pulsating heart where none existed before,” he said.

Urban Property has been stepping up its involvement in BTR housing, an asset class where a block of apartments is typically owned by one investor, or a small group of investors, with the accommodation exclusively tailored as a rental offering.

The rapidly growing sector could become the biggest asset class for new property development by 2030 – larger than offices, student accommodation and even logistics, according to an Oxford Economics Australia report last year.

While developers typically look to reap profit from selling completed projects, Mr Elias said consistent revenue from a BTR project brings its own benefits.

“BTR provides us with a more stable cash flow. It stabilises revenue, which is really important for a developer, especially as serviceability is becoming more of an issue with banks and rising interest rates,” he said.

Urban Property developers will be commencing a design competition for the project in collaboration with NSW Government Architects in May.

The family owned property company has been planning to build in and around some of Sydney’s fastest growing hubs, with developments slated for Edmondson Park and Penrith, with Macquarie Park already underway.

Sydney remains the least affordable city in Australia with only 3.8 per cent of home sales affordable for median income households, according to the latest PropTrack Affordability Hotspots Report.

Parramatta was listed as the most affordable region in Sydney, with a median price of $625,000 for a unit.

The report found that Perth has the most affordable regions in the country.

Mr Elias said the BTR initiative supports Sydney’s dynamic growth and fosters the creation of forward thinking urban spaces.

“Through our dedicated BTR division, Urban Places, we are not merely constructing residences; we are crafting vibrant, inclusive communities,” he said.

“Our commitment extends beyond mere access to ensure every Sydneysider benefits from living spaces that epitomise both quality and affordability, challenging the conventional wisdom that these attributes must be mutually exclusive.”

“As we embark on the design competition phase, we look forward to collaborating with top architects and designers to bring our vision to life, setting new standards for urban living.”