Options abound for ‘Haymarket on George’ site

It’s a developer’s perfect storm: a sublimely located block of Sydney CBD land with more people in the immediate vicinity than at any other location in Australia.

And local and offshore developers are already circling the prized “Haymarket on George” site, as the closing date for expressions of interest approaches.

CBRE Associate Director Capital Markets – International Investments, Mark Hansen, says the 1238sqm site, directly opposite World Square, is one of the last remaining CBD development sites with large-scale potential.

The site has scope for a 41-level tower, subject to council approval.

“It’s that first site as you get down to that southern end of the city that hasn’t been touched, or that gives you a parcel of land of sufficient size to get something special out of the ground,” Hansen says.

“It’s a good combination of both offshore and domestic developers enquiring at the moment. Despite what the newspapers continually say, there’s still good interest out of some of the Chinese groups or groups with links back into China.”

The ‘Haymarket on George’ site could become a 41-level tower.

The land is the amalgamation of three adjoining sites – 51-57 Goulburn St, 43-49 Goulburn St and 698-704 George St – and is being touted as a development opportunity with the potential for apartments, retail, hotels and serviced accommodation.

Included in the sale is the historic Haymarket House and popular pub Scruffy Murphy’s Hotel, which remains one of Sydney’s most profitable venues and could be retained as part of any development plans.

“The turnover out of that pub just just astronomical. The pokie machines and everything that the bar generates, it’s a lot higher than what we expected,” Hansen says.

Hansen says that while the site could “potentially yield 360 units” of residential apartment and serviced apartment accommodation, developers may find significant value in creating a landmark retail component.

“The ability to create some pretty special retail down that end of town has been almost the secondary story, but you look directly across the road at World Square, the retail there sold at a record rate per square metre and a record yield for Australia,” he says.

“It’s just a phenomenal location that retail is going to do really well in and outperform when that Light Rail concludes and finishes off down in that end of town.”

The site is currently home to a retail strip and popular Sydney pub Scruffy Murphy’s.

The population in the area surrounding the Haymarket site is forecast to jump by more than 25,000 over the next 10 years to more than 101,000, delivering ready-made retail clientele and a significant pool of potential residents for new developments.

“The working population and the resident population in that particular catchment is forecast to grow at a rate that is much higher – almost double the rate of the wider Sydney area. The number of people living there is just going to astronomically increase and that underpins the retail as well as the strong support for residential developments,” Hansen says.

“The key with this one, the graphics of that location on the back of World Square, it’s the largest catchment anywhere in Australia in terms of a radius zone. The estimated population that shop at World Square is almost 100,000 patrons.”

The “Haymarket on George” site is being marketed by CBRE’s Hansen, Josh Cullen, Sharon Yang and Rick Butler, with expressions of interest closing on Friday, July 8.