THE face of residential Australia is slowly but surely changing, with developers creating New York-style high-rise living in the hearts of the capital cities. A glut in vacant office space has spawned the almost un-Australian notion of inner-city living in this country where the dream home has historically been a detached house in the suburbs, complete with a backyard and private car parking space. And although it is a long way from the concrete chaos of Hong Kong, in the larger capital cities of Sydney and Melbourne, high-rise living is being encouraged as one way to revitalise the cities.
The idea is attracting followers among young professionals and single people seeking the security of managed buildings and the convenience of leaving the car at home while they catch a taxi or even walk to work.
They see it as a means of making rush hour a thing of the past and enjoying the convenience of being in the heart of the nightlife, theatres and shopping. Reflecting this increasingly popular trend is Southgate in Melbourne and Highgate in Sydney. The 217-apartment Highgate, formerly the Esso building located in the upmarket Rocks area, is the largest high-rise residential development in Australia and the most expensive city residential development on offer, with prices for apartments ranging from A$400,000 (HKS2.28 million) up to the penthouse which was sold in early May to a Sydney businessman for A$3.5 million.
Despite the high price tags, only 17 units are left for sale in that complex. While Asian interest is keen, more than 74 per cent of sales have been to local buyers.
According to Denis O'Neill, who is converting Goldsbrough Mort and the IBM building, renamed Observatory Tower, in Sydney into a total of almost 745 units, Sydney's city living has only just begun. And he says it is not a short-term interest. He has likened his projects and the city housing boom to New York, Paris, London and Rome and said it was a trend which would grow in ever-increasing circles. Earlier this month, Richard Ellis and Colliers Jardine selling agents in Hong Kong sold more than $14 million worth of apartments in Observatory Tower. More than 40 per cent of the 220 units in the project have been pre-sold, with deposits taken for up to $80 million units.
Yet, according to one Sydney real estate agent, there is better value in buying existing stock on resale rather than off-plan. The agent said that those selling off-plan had been selling above the normal price, and units being re-sold were undervalued. Nevertheless, pre-sales continue to boom both on the domestic and overseas markets. The figures speak for themselves, with Sydney approving the redevelopment of 3,000 such units last year compared with none in 1992. Melbourne has approved 1,200 units.