TOGA see success following The Kensington apartment launch
The prominent Sydney building development firm TOGA has quietly seen success at its recently launched eastern suburbs apartment project, The Kensington.
Having launched earlier this year, TOGA has sold around 25 per cent of the building, without a big song and dance of the project launching.
TOGA's General Manager of Sales Anthony Falas says the days of long lines of prospective buyers queuing up outside the display suite to get the first chance to buy an apartment might be gone, but that's not to say sales success isn't being secured.
The majority of buyers have been locals, either those looking to downsize and stay in the area, or professionals at nearby hospitals or universities.
TOGA has seen exactly what they thought they'd see pre-launch, which Falas says is a testament to the team and the research they undertook while in the design and development phase.
And a testament to TOGA's research in the design and development phase, having spoken with the team when the project application was lodged back in January, TOGA have seen exactly what they'd expected in terms of sales and demographics.
"It means we've done our research and understand the audience of the market we're entering," Falas says.
"We've dedicated over 75 per cent of the building to the two and three-bedroom product, offering something that is rare for the area."
Falas added that TOGA wanted to cater for a different market than the area is used to, going away from the more common developments which are targeted at the student accomodation given the proximity to the UNSW Randwick Campus.
They changed the mix slightly knowing there were a number of student accomodation buildings in the local area both established and soon to be under construction.
What did surprise Falas however was at how much of the top-end stock in the development went first.
"The sales of the bigger apartments, upward of around $1.9 million and $2 million, have been among some of the most popular, which is a sign that the current interest rate climate isn't dampening buyer demand at the top end of the off the plan market if you're a reputable developer where buyers have confidence in your product."
On interest rates, Falas says buyers haven't been overly concerned with rate rises. The off the plan market offers a different prospect to buyers compared the established market, given purchasers are not beholden to starting mortgage repayments until the project is completed. And for Kensington, that's expected to be over two and a half years away.
"We're not expecting The Kensington to be completed until the end of 2024, so the current interest rate movements won't affect an off the plan purchaser until they settle, and by that time forecasts suggest rates won't be rising as sharply as they are now," Falas says.
"Remember, we're still in an incredibly low interest rate environment, and while current home owners or buyers on variable rates will be seeing their rates go up to repayments they haven't seen before, we are still at a very low base. New mortgage holders won't quite feel that same impact as current mortgage holders who have been living in the lowest interest rate environment Australia has seen."
TOGA has managed to swerve some of the construction pitfalls which have been damaging the development industry given they also build their project, although Falas says there were, and still are, a few hurdles to overcome.
“Labour costs, costs to procure, they’ve all risen, but we’ve pulled a few levers to help ease the rising rates such as direct sourcing our materials," Falas noted.
But he stressed there's no cutting corners in the development, and certainly not in the finishes on offer.
The Kensington features full marble kitchens and marble and stone bathrooms, with the interiors designed by Richards Stanisich, who worked in collaboration with architects Turner Studio, who also designed TOGA's Wicks Place in Marrickville.