Perfect timing for $2bn CBD project
Photomontage of Mirvac’s future development concept at 55 Pitt Street Sydney.
A $2bn CBD development, estimated to be worth about three-times its present value upon completion, is set to hit Sydney at the perfect time.
According to PRD’s Affordable and Liveable Property Guide, released on Thursday, the estimated value of Mirvac’s stunning 55 Pitt St development is $602,196,000.
However upon its 2027 completion, Mirvac expects the site to be worth $1.9bn.
Despite the continued Covid-era impact of soft office vacancy rates, 55 Pitt St is one of several huge commercial projects in Sydney in the pipeline.
Mirvac’s 55 Pitt St project is expected to be worth $1.9bn upon completion.
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According to the PRD report, the top six commercial projects planned are:
1. Central Place Sydney, Haymarket, estimated value: $854,348,000
2. 55 Pitt Street, Sydney, (602,196,000)
3. Campus, North Sydney ($508,861,000)
4. 107 Mount St Commercial Building, North Sydney, (225,814,000)
5. Macquarie Centre, Macquarie Park, ($195,470,000)
6. West Street Seniors Living Development, Lewisham ($169,620,000)
According to Mirvac: “With frontages to Pitt, Underwood and Dalley Streets, 55 Pitt Street is a development site that has the potential to deliver approximately 62,000 square metres of premium commercial and activated retail space as part of a vibrant new destination that will contribute towards the revitalisation of the iconic Circular Quay precinct.”
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The site completion could land at an ideal time for the Sydney CBD as businesses continue to encourage their workers to spend more time in the office and positive signs for CBD office investors.
Artists impression of 55 Pitt Street
According to the CBRE Sydney Retail Market Q3 2023, “rents remain stable despite market uncertainty and higher vacancy”.
Population growth: “Australia has one of the highest projected population growth rates of the developed world in the coming decade” – according to CBRE, and much easier and faster access to the Sydney CBD via the Sydney Metro, are two key factors expected to make the CBD more attractive.
“Currently CBD vacancy remains high as return to work is slower than expected,” the CBRE report states.
Even big tech firms such as Google are beginning to order their workers into the office at least three days a week.
And the move by Australia’s richest person mining magnate Gina Rinehart to spend $240m on a Brisbane office tower is seen by many as another sign the mass days of working from home are coming to an end.
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