Former industrial suburbs across Australia's capital cities creating new prestige market

Just as high quality redevelopment transformed New York’s old industrial Meatpacking District into Manhattan’s most glamorous neighbourhood, so is great architecture changing some Australian city suburbs into future prestige areas.

Here are some of the suburbs to watch in Sydney, Melbourne and Brisbane. 

Sydney

In Chippendale, art collector and philanthropist Judith Neilson’s multi-award-winning house, Indigo Slam, helped prompt people to start to rethink the old industrial quarter.

“The quality of good architecture is something that will attract people to different areas and help make them great places to live,” says architect William Smart, of Smart Design Studio, who created the eye-catching sculptural home which late last year won the top honour at the National Architecture Awards, The Robin Boyd Award for Residential Architecture.

“I think a lot of people now see Chippendale as very exciting architecturally and it’s incredibly brave of Judith to choose it rather than have the house built on the waterfront.”

That inner city area is now set for another landmark new development, too, with our cover property, a solid brick warehouse built in 1900 and ripe for a stunning renovation, now on the market.

14-16 Buckland Street, Chippendale.
Photo: supplied

Metres away from Judith Neilson’s renowned White Rabbit Gallery, 14-16 Buckland Street in Chippendale is an old warehouse, built originally for making shirts and later used as the HQ of Alfa Romeo and a publishing house. Set to sell for $7.3 million is likely to be another celebrated benchmark conversion for the rising suburb.

With just under 1,000 square metres of space on two levels plus a mezzanine on the upper floor, timber windows, interior beams and a steel roof, its curved shape followed the course of the old Blackwattle Creek which once ran through the farm on the old estate.

“People love warehouses, and the opportunity to have these big internal spaces where they can shut themselves off from the world, and have movable, flexible floorplans,” says agent Harriet France, of Sydney Sotheby’s International Realty.

“And it’s in what’s becoming an even more interesting part of Sydney, lively and edgy close to the city. I think it’s about location and architecture – and one attracts the other.”

14-16 Buckland Street, Chippendale is a warehouse conversion success story.
 Photo: Supplied

That kind of transformation can really help to elevate a suburb. In Redfern, for instance, Zoe Maraldo and husband Marcus have their plans for an unfinished 700-square-metre warehouse conversion they paid $3,615,000 for in December 2015 – which previously changed hands for $1.43 million three years before – with the council.

“There are four to five substantial renovations going on in that street alone,” says Ms Maraldo, 45. “In five years’ time, Redfern will be considered just as desirable as Surry Hills. I’ve noticed how much it’s changed even in the last year.”

The redesign, into a five-bedroom, five-bathroom home over two levels, with a rooftop pool, has been drawn up by MCK Architects, whose W House, a warehouse conversion in Surry Hills, was shortlisted in the NSW Architecture Awards.

Principal Mark Cashman says, “Places like Surry Hills and Redfern have been gentrified over the last 10 years and there’s a whole energy there that architecture contributes to. People want to invest in those suburbs and give back to them, while still maintaining their heritage and aesthetic.”

Melbourne

A renovated warehouse in Abbotsford.
Photo: Supplied

Warehouse conversions are also helping to drive future prestige suburbs in Melbourne. In Abbotsford, two kilometres east of the CBD, a warehouse conversion changed hands for $1.5 million five years ago. Three years later, it changed hands for more than $2.5 million. Currently, there’s an apartment for sale in the well-known Byfas Mills conversion.

“It’s a suburb that was quite untouched five years ago, but now those new developments are setting fresh benchmarks for it,” says Zoe Ho, of agents Kay & Burton. “It will be a future prestige market. As well, Caulfield North is now coming up as well as Mont Albert.”

Colleague Walter Dodich agrees. “Abbotsford is certainly up and coming,” he says. “It’s so close to Studley Park but it is more affordable, which is driving prices up, and there are a lot of apartment conversions going on.”

29/8 Trenerry Crescent, Abbotsford.
Photo: Image Factory

One of the area’s prestige prizes is 29/8 Trenerry Crescent, selling for over $1.7 million.

On the penthouse level of a conversion of the old mills built for spinning wool, silk and cotton in 1922, this two-level apartment, with study, retains the atmosphere of its site but with a contemporary fit-out in one of the most up-and-coming areas of Melbourne. 

“It has big open spaces, with around 200 square metres for great living areas and rooms,” says agent Walter Dodich, of Kay & Burton. “Being an old warehouse gives it great character too in what would have been an industrial area but which is now becoming quite cosmopolitan and up-and-coming.” 

Brisbane

Brisbane CBD: The city’s prestige market is not expanding as rapidly as Sydney and Melbourne.

In Brisbane, the prestige market’s been sluggish, so prices are still relatively low compared to those in Sydney and Melbourne. Haesley Cush,  of Ray White Newstead, says the suburbs to watch, however, are Wilston, three kilometres north of the CBD, and Hendra, six kilometres to the north east.

“Wilston does carry some prestige property but it probably hasn’t yet enjoyed the consistency of $2.5 million-$3 million sales,” he says. “But we believe it will start to be a standout in that space; it’s very close to the city, attracts the medical fraternity to the hospital and has easy access to the airport.”

Elite buyers may also like 65 Dalrymple Street, located in the most prestigious street in the suburb, Ray White associate Elliott Clarke says this two-level 1916 family home with great city and mountain views was renovated beautifully in 2006. 

“And Wilston is definitely up and coming,” he adds. 

“Its average house price has blitzed through the $1 million average in the last year and doesn’t show any signs of slowing. As a suburb that predominantly consists of pre-war homes, or Queenslanders, the demolition-controlled neighbourhood features a high number of homes finished with high quality renovations.” 

The property goes to auction on March 16.

65 Dalrymple Street, Wilston.
Photo: Supplied