Real estate firms join forces

Sydney, Australia--

Consolidation of real estate agencies has led to the formation of LJ Hooker Commercial South Sydney, with a mandate to expand as the area moves from its traditional industrial tone to higher-end residential offerings.

As part of the merger, agency Alexandria Commercial was also recently acquired.

The director of LJ Hooker Inner City and managing director of City Commercial, Warren Duncan, said increased demand from local and overseas investors would dominate business in the coming year.

Last year Mr Duncan and Patrick Brush, head of LJ Hooker Commercial, joined forces with Kristen Marsh, managing director of Billicorp, a high-profile agency for the past decade in South Sydney.
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Ms Marsh is the new investment and development site specialist for the merged group, based in Shanghai. Mr Duncan said she would provide opportunities for Asian investors to get a foothold into the South Sydney residential market.

"This area has been one of the best-performing sectors across the Sydney metropolitan area and we expect a busy year ahead," Mr Duncan said.

"There is the Green Square development that will add commercial, retail and residential space, along with East Village for food and retail."

One of the key impacts on South Sydney has been the growing exit of the traditional industrial/warehouse business to the west and south west, which has left the properties ripe for residential projects.

Mr Duncan said growth in housing has meant the area is also emerging as an "eat street" precinct.

East Village Urban Marketplace is three kilometres from the Sydney CBD and within the Green Square Urban Renewal Project. Green Square is a catalyst for change across the entire suburb of Zetland, Danks Street area and Greater South Sydney.

The gentrification of the primary trade area began in the mid-1990s and is now characterised by the Danks Street precinct and neighbouring suburbs populated by a young, affluent professional market earning a high per capita income.

Mr Duncan said the increase in the cash from China would continue this year as many investors prefer to be near the City, but are attracted to higher density and off-the-plan new developments. "We envisage that more commercial and industrial space will be keenly sought after by cashed-up overseas investors who want to eat, live and work within close proximity for transport and the City," Mr Duncan said.