The demand for space close to the airport at Mascot and further down towards Botany, has seen commercial and industrial prices double and vacancy rates decline.

Like all fringe suburbs, the desire to be near infrastructure and retail amenities has also lead to a rise in demand for sites near the Green Square precinct.

The Milligan Group, a prominent residential developer, recently bought 830 Elizabeth Street, Waterloo.  for $20 million in an off-market deal from owner occupiers Marshall Investments, the owner of the Apparel Group.

The property is a freehold heritage-listed site that was built in the 1920s. It has a total net lettable area of 3471 square metres  on a site area of 3585 sqm.

There is potential for the property to be redeveloped for residential use (STCA), or left as a commercial office building, although it is understood the buyer intends to lodge a residential scheme on it.

Daniel O’Brien, a director of Knight Frank is understood to have brokered the off market deal, but declined to comment on the sale.

According to Knight Franks’s national head of research, Matt Whitby, Waterloo has been swept up in a population boom since the Green Square Urban Renewal Project was announced in 1995.

Mr Whitby said the area has a high proportion of apartment buildings, with 1193 units completed in 2011 and many more projects to commence.

‘‘Strong growth in capital values has been witnessed across the Sydney metropolitan area, which has contributed to a high volume of apartments being added to the pipeline of developments,’’ Mr Whitby said.

One of the larger sales was by Goodman Group to Meriton, with the buyer looking to develop 2300 residential apartments and 45,000 sqm of commercial/retail space.

In another deal, Eugene Evgenikos, the national director of industrial at Knight Frank and his colleague, Adam Bodon, a senior executive, also recently sold a site at 1-5 Kent Road, Mascot, to Meriton for $43.4 million.

Mr Evgenikos said the industrial complex had short-term holding income and the potential to develop more than 25,000 square metres of gross floor area.

‘‘There is confidence in the South Sydney residential market and residential development sector in general, with strong unit sale prices, volumes and demand for the finished residential product [along] with exceptional level of growth throughout 2013,’’ Mr Evgenikos said.