Developer Tim Gurner makes a luxury landing in Sydney’s CBD as market takes off

Sydney deserves better, says Melbourne developer Tim Gurner who is redoing designs for a trophy site so he can bring larger luxe apartments with better views.

Tim Gurner has big plans for Sydney’s CBD. Picture: Aaron Francis

When luxury apartment developments go up around the country, high-profile Melbourne developer Tim Gurner is the name on just about everyone’s lips.

Whether it’s the Saint Moritz project in beachside St Kilda or ambitious plans for Melbourne’s iconic Jam Factory, he is charging ahead.

So it’s little surprise he has landed in the Sydney CBD with an up-market project.

The developer has just picked up a CBD trophy site in Kent St for about $200m and will demolish an ageing office tower to make way for an $800m, 34-storey two-tower landmark on the doorstep of Barangaroo and Sydney Harbour.

The 1195 sqm site, which adjoins the Barangaroo precinct, marks his entry into the Sydney CBD and builds on a scheme pioneered by long-time owner Barana Group.

Mr Gurner and Barana collaborated developing St Kilda’s former Novotel site into the landmark Saint Moritz complex. Buyers can expect a similar level of luxury at Kent St, whose services and facilities will be “hotel like”.

Am artist’s impression of plans for 189 Kent St, Sydney.

“This site is positioned within one of the most expensive and luxurious locations in Australia, so we plan to take what we know from Saint Moritz and apply it on a whole new scale, to offer the market something that is completely unique in terms of design, luxury, service and amenity,” Mr Gurner said.

Initial designs will be reworked so there are more large apartments to capitalise on the panoramic views of Sydney Harbour and to bring a sense of opulence to the project.

“Our vision to create a city defining, ultra luxury address with New York-style whole-floor residences, gives us the freedom to create something truly incredible, with a level of class and luxury that we know Sydney is ready for,” he said.

Gurner Property Group general manager Simon Adams with managing director Tim Gurner. Picture: Brett Costello

While details are yet to be disclosed, a conservative approach will be taken on pricing. But the entrepreneur feels that now was the time to pounce as demand returns.

“We have been watching the market very carefully for 18 to 24 months, waiting for the right time,” Mr Gurner said.

He is aware of the complexities in the Sydney market. “We also know there are different factors at play in Sydney – lack of affordability, scarcity of quality product and depth of the luxury market – that make it far more capable of withstanding the current economic headwinds, so it’s for this reason that we are very confident in the Sydney market and remain bullish on residential property in this blue chip city,” Mr Gurner said.

Tim Gurner’s 189 Kent St will take advantage of views across Sydney Harbour.

He called out the impact of construction and labour costs on projects nationwide, which made Sydney a strong opportunity with its higher price-per-square-metre average, motivated buyer pool and sought-after postcodes for offshore and local buyers.

“Sydney is a very unique market with an incredibly low amount of supply and an even smaller opportunity to acquire great sites with harbour views; it is even rarer to be able to transact on a site that also has planning approval ready to go,” he said.

Mr Gurner is not the only developer to spot the opportunity.

Lendlease has sold more than $1bn worth of apartments in the luxury tower it is developing at Sydney’s One Circular Quay – and there is still a $140m-odd penthouse to come. Developer Cbus Property has already had strong penthouse sales at its landmark development on the former David Jones department store site.

Others are also readying new projects. Deicorp has launched its city project The Hyde Metropolitan, on the southern edge of Hyde Park and is selling a tranche of luxury apartments.

Deicorp’s The Hyde Metropolitan on the southern side of Hyde Park.

Developer Central Element and equity partner MaxCap have just won approval for a mixed use project at 271 Elizabeth St, also overlooking the city park.

Designed by renowned architects, Murcutt Candalepas, it will be the first time friends and colleagues Glenn Murcutt and Angelo Candalepas will work together on a Sydney CBD project.

The developer is also looking to take city luxury to the next level with a project combining 42 apartments with panoramic views over the Royal Botanic Gardens to Sydney Harbour, hospitality spaces and lifestyle amenities.

It aims to put its development on par with properties like London’s No.1 Grosvenor Square, and New York’s Beckford House and 1228 Madison Avenue.

For Sydney city dwellers, the luxury life beckons.