"[37 Archer Street] provides developers with the rare opportunity to develop a landmark tower on the edge of Chatswood CBD"
As one of the preeminent suburbs on the Lower North Shore of Sydney, Chatswood is a constantly evolving transport hub, positioned between St Leonards, North Ryde, Lane Cove and Willoughby. As it continues to expand, its zoning has come under scrutiny, and the Willoughby City Council’s most recent Planning and Urban Design Strategy guidelines have indicated that the local government want to expand on the locality’s CBD, to provide more commercial and office space.
The changes in spatial allocation are providing an opportunity for developers to seize CBD-centric assets that would have been previously restricted to residential construction only. One such site is 37 Archer Street; a property that is currently occupied by an entire apartment block that consists of 14 strata lots.
Currently occupied by residential units, the strata owners are joining together to offer the majority of the total property
Based on the Chatswood CBD Planning and Urban Design Strategy 2036, the property’s current zoning of R2 for Medium Density Residential is soon set to change. The new indicative zoning will classify the property as B4 – Mixed Use, allowing for a wide variety of commercial undertakings.
“The endorsed increase in FSR and height limits as outlined in the Willoughby City Council’s Urban Design Strategy provides developers with the rare opportunity to develop a landmark tower on the edge of Chatswood CBD,” stated Tim Holtsbaum.
Holtsbaum is one of the exclusive selling agents from Knight Frank that are being tasked with presenting the property. He's working in conjunction with colleagues Dominic Ong and Alex McColl to bring 37 Archer Street to market.
The height limitation alterations that Holtsbaum is referring to are substantial; from 9 metres, to part 68 metres, part 23 metres. The potential Gross Floor Area (GFA) of the redeveloped site could sit at 10,750 sqm (STCA).
Additionally, the property is unique in the sense that the vendor is not a single individual or corporation – it's a collection of strata owners who have come together to provide the successful buyer a more complete land parcel.
“It is extremely rare to get the corporation of strata unit holders to agree to market their properties in one line,” explained Mr. McColl. “The new planning controls have unlocked this site for developers to take advantage of the strong apartment demand in Chatswood.”
That strong demand that McColl referenced is reflected in Chatswood’s new apartment prices relative to the Lower North Shore more generally. According to Knight Frank's research, “New apartment prices in Sydney’s inner suburbs remained steady at an indicative $15,500 per sqm throughout 2021, to range between an average of $13,000 and $24,000 per sqm. Over this time, new apartment prices in the Chatswood district were stable at an indicative $17,500 per sqm, with the average ranging from $16,000 to $24,000 per sqm.”
Map depicting 37 Archer Street's location
For Mr. Ong, the expectation is that interest is going to be received from a bevy of sources, due to the quality of the offering.
“We expect buyer interest from a broad range of groups, with both Asian and local developers likely to participate in the process given the desirable attributes of the Chatswood market,” stated Mr. Ong.
37 Archer Street is a reminder that the property market is not about what currently is – it's about what could be. With that in mind, this Chatswood landholding has the potential to be a landmark project in an already well-established destination suburb.
