Herring road Urban precinct - impact on house prices

[EstateCentral]

Just wondering if anyone lives in the Macquarie Park, Marsfield area and what your thoughts on the Herring road Urban precinct development.

You can watch the video of the proposed development here http://www.planning.nsw.gov.au/Hous...riePark/tabid/615/language/en-US/Default.aspx

Basically, there will be 5000 more homes in high rise buildings by 2031. There will be more street front shops, services and restaurants along the Herring road strip from Epping rd to Waterloo road. It will create more employments and accommodations for the growing population in the area.

My question is what would be the long term impact on property prices in the area. I think house prices will certainly have a positive impact. But I'm not sure about unit or townhouse prices as the construction will create over 5000 units which may cause over-supply problem.

I have a townhouse in the area and I'm puzzled if I should sell it now or keep it. Would be grateful to get some advice

Thanks

 

[nww]

For an investment , Im not sure , as someone which lived in the unit complex
next to the Stamford I could not wait to get away from the area , I cannot see
how the road system is going to cope, even before the latest unit complexes
were complete the peak hour was horrendous.
Currently the traffic in morning rush can be in gridlock on Epping road trying
to get down to Macquaire uni and shopping centre and same in the afternoons
heading up to Epping Road, which also will be bumper to bumper all
the way to Epping and further on.
There is just no way of getting around the area , same applies to Ryde Rd trying
to use Talevera , Waterloo or Vimera, Blaxland on Epping.

The older units around Herring have certainly increased in price leading up
to the release of the new units.
Stampford will be under construction soon and I believe the old uni complex
or is it housing commission across from it in Herring is planed for units as well.

There is no slowing down of people purchasing these new units as most if not all are sold off the plan, I recall the lines of people trying to get into the old display suite on Herring road
when the first secound and third release occurred .

Looked at a few townhouses west of the uni just over two years ago which were selling
for around the 450-470 mark , today doubt you would get one much under 700.
Townhouses is the area seem to be on par with Hornsby for price now, perviously just under.

 

[Scott No Mates]

It is Sydney, it is roughly north shore, sits beside the rail line & M2, has the largest shopping centre in the southern hemisphere (as of October), midway between Parramatta & CBD, midway between Strathfield & Hornsby, adjoins the Macquarie University & Sydney's newest private teaching hospital.

Sell up now and buy in a country town where you won't have any development pressures.

 

[serendip]

For an investment , Im not sure , as someone which lived in the unit complex
next to the Stamford I could not wait to get away from the area , I cannot see
how the road system is going to cope, even before the latest unit complexes
were complete the peak hour was horrendous.
Currently the traffic in morning rush can be in gridlock on Epping road trying
to get down to Macquaire uni and shopping centre and same in the afternoons
heading up to Epping Road, which also will be bumper to bumper all
the way to Epping and further on.
There is just no way of getting around the area , same applies to Ryde Rd trying
to use Talevera , Waterloo or Vimera, Blaxland on Epping.

traffic was my first thought. I had to go through this area at 11am midweek & the traffic was maxing about 30kms / hour eeek

 

[EstateCentral]

traffic was my first thought. I had to go through this area at 11am midweek & the traffic was maxing about 30kms / hour eeek

You two are right, I did not think of the traffic problem until you mentioned it. The traffic on Epping road and Herring road is quite bad during peak hours. Apparently, the Ryde council opposed the plan citing the public transport system won't be able to cope it.

yeah, some townhouses in the area are being sold in the 700 mark now.

 

[chilliblue]

Infrastructure such as schools and road systems are the greatest problems in that area with the NSW Sate Government being repeatedly informed that the private and public systems are running at over capacity already with significant building and running funds required immediately but none forthcoming.

There are no provisions for additional police, several fire stations have been downgraded and some are unmanned during certain days of the week and Gladys is about to stuff up the efficient train systems so all you have access to is great shopping and the uni.

 

[see_change]

we identified East Ryde / Macquarie as somewhere to buy several years ago , and that whole area has gone ahead . Was our alternative to Mosman when the GFC hit , but we ended up buying in Mosman as we just didn't find the right properties there . The obvious driver for me was the railway . Going north of chatswood , two stops north you get to Lindfield or .......Macquarie . Just a minor price differential 5 years ago ....

We noted that you had to go up to hornsby / asquith to get similar value on the north shore line

Interesting to see the comments about the peak hour traffic , but the peak hour trafffic in many places in Sydney is Crap , hence the importance of the railway.

Can only see the area going ahead more over the next decade and a different shopping / restaurant precinct can only help .

If I was buying in Sydney atm I'd be looking there .

Cliff

 

[nww]

we identified East Ryde / Macquarie as somewhere to buy several years ago , and that whole area has gone ahead . Was our alternative to Mosman when the GFC hit , but we ended up buying in Mosman as we just didn't find the right properties there . The obvious driver for me was the railway . Going north of chatswood , two stops north you get to Lindfield or .......Macquarie . Just a minor price differential 5 years ago ....

We noted that you had to go up to hornsby / asquith to get similar value on the north shore line

Interesting to see the comments about the peak hour traffic , but the peak hour trafffic in many places in Sydney is Crap , hence the importance of the railway.

Can only see the area going ahead more over the next decade and a different shopping / restaurant precinct can only help .

If I was buying in Sydney atm I'd be looking there .

Cliff

Yes Cliff traffic in Sydney is crap but you need to experience this area, I work
Mascot live Hornsby and know this area to be the worst.
Prior to Christmas I give myself 2.5 hours to drive to work (37km) if near peak time.
Traffic now from the Macquaire area is actually banking up some peak times
back to the Pacific Hwy which then causes the traffic on the Pacifc Hwy to bank
up back past Bobbin head turnoff.
I can't see this improving even with the extension of the Newcastle Fwy to
the M2.
And using Pennants Hills Rd to Mascot is no better.

 

[see_change]

Pacific hwy is pretty bad but I always think pennant hills rd is the worst , but there's light at the end of the northconex tunnel for that now ....

Personally , I don't think peak hour traffic problems will impact / slow the growth of the area given it now has the railway . That's the game changer for me .

Cliff

 

[Michael_X]

I live in the block of units next to the Stamford Hotel on Herring Rd. Had the unit revalued last year at $470k and will be getting another one shortly. The two most recent sales in the complex both went for $600k+.

Growth has been amazing in the past year, and I suspect it's because of the new high rises going up next door. Even the new one bedders are selling for $600k+ so I guess the older stock was bound to increase.

Traffic isn't too bad coming out of Herring Rd onto Epping Rd. It's Epping Rd that's the issue.

 

[Scott No Mates]

Peak hour traffic is a shocker in the area, as with other business parks eg. Bellavista.

NWW why would you bother driving from Hornsby to Mascot unless you have to? Take the train to Central, then onto Mascot. Get a bike locker at Mascot and ride the rest of the way.

 

[EstateCentral]

Thanks for your inputs guys.

I have another question regarding the townhouse investment property that I'm having. It's positively geared at the moment, so I don't have any tax advantage on the property, I even have to pay tax on it. If I sell the property now and put the money into my PPOR loan, I'll save roughly $10-$15k a year on interest.

If I keep the townhouse for another say 15 years, do you think in average it will appreciate at least $20-30K/year? Actually, I haven't worked out the CGT implication when I sell it.

Should I sell it, and put some money to the PPOR loan, or use the money to buy (with additional borrowed fund) a house with land value for investment instead? Houses generally appreciate more in the long run, however the houses in the Marsfield, Epping area are too expensive now. Probably, will look at Castle hill or other suburbs along the North West rail line.

Also, how long is the life of a townhouse? Mine is around 35 years old now,will it still attract buyers in 20 year time?

 

[Gockie]

Thanks for your inputs guys.

I have another question regarding the townhouse investment property that I'm having. It's positively geared at the moment, so I don't have any tax advantage on the property, I even have to pay tax on it. If I sell the property now and put the money into my PPOR loan, I'll save roughly $10-$15k a year on interest.

If I keep the townhouse for another say 15 years, do you think in average it will appreciate at least $20-30K/year? Actually, I haven't worked out the CGT implication when I sell it.

Should I sell it, and put some money to the PPOR loan, or use the money to buy (with additional borrowed fund) a house with land value for investment instead? Houses generally appreciate more in the long run, however the houses in the Marsfield, Epping area are too expensive now. Probably, will look at Castle hill or other suburbs along the North West rail line.

Also, how long is the life of a townhouse? Mine is around 35 years old now,will it still attract buyers in 20 year time?

I'd keep the townhouse. The value of it is just going to increase every year. Yes there's bad traffic in the area but a townhouse gives you land and all these new units in the area that are selling up to 600k do not have courtyards so the town houses will be relatively scarce in the future - gotta be worth a lot more than those units with no land. There should also be light rail from Macquarie to Parramatta at some point in time - it's the 3rd biggest employment hub in Sydney plus you have the uni and the teaching hospital, it's always going to be popular.

http://www.parracity.nsw.gov.au/__d...127717/Western_Sydney_Light_Rail_-_Part_2.pdf

If you are positively geared pull out some equity and buy some more assets - if you sell remember you would have to pay some cgt so it's really a no brainer.

 

[EstateCentral]

Thanks Gockie. I thought I would keep it too based on the same reasonings that you just said. I had not heard about the Western light rail before. Thanks for sharing.

Yeah, I have pulled out some equity enough for another deposit. Thinking of buying a house which will be negatively geared, but not sure if I can afford to pay all the interests especially when the interest rates start rising.

 

[nww]

Peak hour traffic is a shocker in the area, as with other business parks eg. Bellavista.

NWW why would you bother driving from Hornsby to Mascot unless you have to? Take the train to Central, then onto Mascot. Get a bike locker at Mascot and ride the rest of the way.

Shift work and overtime all the time.

Don't know many who work at the airport who take public transport.