String of strata sales to spur St Leonards’ medical evolution - Colliers

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Dec 4, 2024

String of strata sales to spur St Leonards’ medical evolution - Colliers

The largest office strata sale in St Leonards this year has been secured for $3.9 million, negotiated by James Mullin and Tom Appleby of Colliers.

Suite 205, 490 Pacific Highway, St Leonards sold by Colliers
Suite 303, 500 Pacific Highway, St Leonards sold by Colliers

The largest office strata sale in St Leonards this year has been secured for $3.9 million, as the suburb becomes a major hub for medical professionals.

Mirvac’s St Leonards Square and New Hope’s Landmark premium grade buildings, positioned at 480-490 and 500 Pacific Highway respectively, have become increasingly desirable for medical professionals given their proximity to the Royal North Shore and Mater Hospitals, the recently opened Crows Nest Metro Station, and the St Leonards train and bus interchange.

The property at Suite 303, 500 Pacific Highway is the second to be sold to a medically based group since its stratification, with the key location and proximity to public car parking being particularly attractive to these professionals, according to selling agents James Mullin and Tom Appleby.

“Given the proximity to the Crows Nest Metro Station and the growing reputation of St Leonards as a medical hub, it’s easy to see why professionals within the sector are looking towards the region,” Mr. Mullin said. “With Royal North Shore Hospital just 400m away and the Mater Hospital within the vicinity, medical professionals have shown great interest in buying into the area.”

The Colliers team has also recently sold Suite 301, 500 Pacific Highway for $2.25 million, again to another local medical operator. Nearby, the Sydney North team have exchanged on Suite 205, 490 Pacific Highway, their 7th sale in the St Leonards Square building over the last 2 years, all to medically based operators.

Medical businesses are increasingly looking to buy rather than lease due to the long-term stability and investment potential that ownership provides. Owning property allows these professionals to build equity and have greater control over their practice environments.

Additionally, the TOD (Transit-Oriented Development) upzoning may result in more collective sales of dated strata office buildings, potentially causing displacement and spurring demand for modern offerings such as St Leonards Square and The Landmark.

“The TOD upzoning initiative aims to increase density and improve public transport accessibility, making areas like St Leonards more attractive for development. This could lead to older office buildings being sold collectively for redevelopment, pushing medical professionals to seek newer, more modern spaces,” Mr Appleby said.

Furthermore, the recent opening of the Crows Nest Metro Station has significantly enhanced the accessibility of St Leonards, making it even more appealing for medical professionals who value convenience for both themselves and their patients.