Why Penrith is the new Parramatta
The focus of western Sydney’s relentless property development wave is shifting from Parramatta to Penrith, where a slew of big projects is either under way or about to start.
Projects include the city’s first A-grade office building, two high-rise apartment towers of up to 46 levels, several office developments, an apartment hotel, a 7000 square metre city park and the $1 billion redevelopment of Nepean Hospital.
Joanna Schrumpf, whose family owns local developer Astina Group and has lived in the area for 46 years, said Penrith was undergoing remarkable change, becoming more of a destination than a departure point.
“It’s come a long way since you’d go to Beef and Barramundi in the middle of a paddock for a big night out,” Ms Schrumpf said.
Astina Group has just developed 152 apartments in the East Side Quarter next to Panthers Penrith Leagues Club and is set to open the new Astina Suites apartment hotel in the CBD next month.
Nearby, work has started on the $50 million development of Penrith’s first A-grade office building at 50 Belmore Street, which has a projected end value of $90 to $100 million.
Designed by Bates Smart, the eight-storey building is being developed by the Sandran Property Group, which also owns the adjacent Australian Taxation Office building, refurbished at a cost of $35 million four years ago.
Sandran managing director William Phillips said there was a shortage of quality office space in Penrith and the next step in its evolution was to ensure that residents worked locally rather than commuting to the Sydney CBD.
“We see a great opportunity for businesses to access quality A-grade accommodation at half the price and be located where their staff are,” Mr Phillips said.
He said Sandran had been investing in Australian regional areas for a quarter-century, building a property portfolio of more than 70 assets.
“We believe the post-pandemic world will strengthen the attraction to all major regional centres as we all look to work closer to home and enjoy a better work-life balance.
”With the enormous investment taking place at the western Sydney aerotropolis, Penrith and its surrounding suburbs are poised to do very well over the next decade.”
Urban Property Group is also heavily invested in Penrith, developing 500-plus apartments at Sheffield Quarter including the Lumina project, part of the Thornton subdivision, with an end value of $300 million.
CEO Patrick Elias said demand was very high for quality apartments in the area and the company was about to embark on its biggest project yet – a 46-storey development on High Street.
The development application (DA) is now with Penrith City Council and includes 41 serviced apartments, 272 residential apartments, and commercial and retail space.
Another developer, Toga, plans to build a 36-storey tower next door called Penway Place and also has an active DA with the council. Its proposal includes 356 apartments, shops, cafes, restaurants and retail space.
Meanwhile, the council has two big projects of its own under way.
DAs have been submitted for the 7000sq m City Park, and another for Soper Place, which will incorporate a five-level car park topped by four floors of A-grade office space covering more than 6000sq m.
