09.06.2023 Buying Tips

Warehouses Are Part Of Sydney’s Prestige Property Market

Warehouses Are Part Of Sydney’s Prestige Property Market

The trend for warehouse living shows no sign of subsiding.

In fact, warehouses are now part of the prestige property market in Sydney.

Warehouse living is one of the most important property trends around the world right now. Converted warehouses in cities like Stockholm, Paris, New York and London are attracting huge interest, celebrity and executive buyers, and top prices.

Here in Sydney’s inner city and eastern suburbs, more people than ever are searching for warehouse conversions due to the unique space and lifestyle they can offer. That means they’re commanding higher prices than ever before and breaking suburb records as they become their own significant sub-market of the prestige property sector.

Warehouse fundamentals

Whether you own a warehouse and are looking to sell or want to buy a warehouse conversion, there are some key fundamentals that set warehouse living apart:

  • Scarcity value. In Sydney, very few genuine warehouses come onto the market. Their scarcity value not only drives up prices it also means buyers looking to find a warehouse are often willing to step outside their area to secure one. We often have buyers from the East looking to the inner city or inner west to find one.
  • Unique appeal. No two warehouses are the same. Partly, this is because they are designed from something else: a commercial building is being adapted, reused and reinvented as a residential property. Each one has its own history, charm and quirks.
  • Space, light and location. These are three key things buyers are usually looking for in a warehouse:
    • With large floor plans, warehouses can offer generous and unusual spaces – often far bigger and more versatile than a house or apartment in the same area.
    • With courtyards and industrial steel frame windows, skylights and lightwells, they also usually feature a wealth of natural light and, with their high ceilings, are a great place to display an art collection.
    • Like any property, a great location within walking distance of lifestyle amenities always boosts the appeal of a warehouse.

The finished product: 198-200 Australia Street, Newtown

198-200 Australia Street, Newtown, epitomises everything that is great about the rise of warehouse living.

The adaptive reuse of this old bakery and adjoining warehouse, reimagined by Anna Carin Design Studio, respectfully honours its heritage, materials and historical context. With 749 sqm of living space, five bedrooms, and parking for four cars, its scale is impressive. But it remains hidden and private: an oasis in the inner city with a vegetable garden, pool and designer outdoor areas.

Backing onto Camperdown Memorial Rest Park, the property is notable for many reasons. It has a bespoke mural on one of its exterior walls by street artist Tim Phibs, and earned the builder, Joey Pamment, a Young Builder of the Year 2022 award from the Master Builders Association.

It’s not often a property like this comes onto the market, and the Ben Collier Team is proud to be co-listing 198-200 Australia Street, Newtown, with The Agency’s Brad Gillespie.

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Even before its latest reinvention, 198-200 Australia Street set a new suburb record of $5.8 million when it changed hands in 2020. Now, with a guide of $12 million, there’s no doubt we expect it to break the current Newtown suburb record of $6.85 million when it goes to auction on 7 October.

This price rise demonstrates the complete transformation of the property in the last three years. It also shows the rising popularity of warehouses in the prestige sector, the property’s strong design credentials, and the strength and growth in this sector since the pandemic hit.

The blank canvas: 36 Gosbell Street, Paddington

While many warehouse buyers are looking for the perfect conversion, others will be lured by the possibility of doing that conversion themselves. They are looking for the potential the property has to be transformed into their own grand design.

In Paddington, we have 36 Gosbell Street on the market. A blank canvas, set on a 752 sqm corner block in the heart of Paddington and currently zoned commercial, this warehouse-style building offers enormous potential for redevelopment (STCA).

A rare opportunity

Those looking for a warehouse lifestyle will know that few genuine warehouses are available anywhere in the eastern suburbs. Many warehouses are large enough to be converted into apartments, and even new apartment buildings are being created with an industrial warehouse aesthetic: think exposed brick, double-height ceilings, and the classic Brooklyn or SoHo-style “loft”.

While there are more warehouses in the inner city (Darlinghurst, Redfern and Surry Hills) and inner west (Enmore, Marrickville and Newtown), these properties can attract huge interest. However, marketing to the right buyers is crucial. Relying on a standard sales strategy means the property risks being overlooked by the right buyers.

We’ve sold several warehouse conversions in the past few years and have a database of buyers keen for more. If you’re thinking about buying or selling in Sydney’s Eastern Suburbs, contact my team today.