Sydney’s Hyde Park is poised for a significant transformation with a surge in luxury apartment developments aimed at appealing to a growing market of downsizers and affluent expatriates. In July 2023, Lendlease announced its acquisition of 175 Liverpool Street, planning a lavish residential project worth $2.6 billion that will feature 300 apartments directly opposite Hyde Park. This development is part of a broader trend that is reshaping the area into a predominantly residential enclave.
Several major projects have gained traction, including a 55-storey apartment complex and hotel at 201 Elizabeth Street, which recently received approval from the City of Sydney’s planning committee. Additionally, a proposed mixed-use residential project at 338 Pitt Street, comprising twin towers with 600 apartments, is on the horizon following Billbergia’s acquisition of the site earlier this year.
The demand for luxury living near Hyde Park has led real estate agents like Michael Lowdon from Ray White to predict a shift in the area’s landscape. Lowdon states that there will soon be “no commercial buildings around Hyde Park,” reflecting the growing preference for high-end residential properties among buyers. He has observed a trend where the typical purchaser is an owner-occupier couple over the age of 60 who are looking to downsize after retirement.
“It’s very much downsizer territory,” Lowdon remarked, noting that many buyers are coming from the upper and lower north shore rather than the eastern suburbs. The allure of living adjacent to a large park, as opposed to views of the harbour, is attracting those who value a lifestyle reminiscent of urban living in cities like London and New York.
“People are willing to compromise on that postcard view because the park is a lovely setting,” he explained. “There are a lot of dogs in these buildings. They are attracting people who want to have that lifestyle, with the park.”
As of the 2021 census, there were 16,534 private dwellings in the Sydney 2000 postcode, which encompasses significant residential areas such as Haymarket and Millers Point. This figure represents an increase from 12,687 a decade earlier. The overall number of residents in Sydney’s central business district grew from 22,760 to 27,936 during the same period. The City of Sydney estimates that approximately 3,200 central Sydney dwellings have been constructed over the past five years, with another 5,000 planned for the near future.
Planning Minister Paul Scully has expressed enthusiasm for the rise of residential apartments in Sydney’s CBD but has emphasized that these developments should not diminish the availability of commercial spaces.
The demographic profile of those moving into Hyde Park is diverse, as noted by David Milton from SRM Residential, who has recently relocated to the area himself. He highlights local professionals seeking convenience and migrants drawn to the vibrancy of city life as part of the mix, although downsizers remain the dominant market segment.
“They might have teenage children who are about to move out soon, or they’re empty nesters,” Milton explained, adding that concierge services are particularly appealing to this group. “They want for guests to come over and for it to not be difficult.”
Milton, who moved to Hyde Park a year ago, underscores the importance of proximity to the eastern suburbs and excellent public transport links as key attractions for potential residents.
As Hyde Park undergoes this significant transformation, it is clear that the demand for luxury living is reshaping the landscape of Sydney’s central district, marking a shift towards a more residential-focused environment.
