High-density sector to remain strong in Sydney
Date Posted: Jun, 2014
As capital city property values begin to cool, you might be wondering what is the best option for a profitable Sydney investment property. According to BIS Shrapnel, it might be time to start thinking vertically.
The recent report Apartments in Sydney Suburbs 2014 to 2019 makes the case that Sydney's high-density apartment market is set to continue strong through 2016 thanks to low vacancy and interest rates.
This is especially evident in the off-the-plan market.
"Off-the-plan sales will continue to remain strong over the next couple of years, underpinning further rises in new high-density apartment construction," BIS Shrapnel said.
BIS Shrapnel forecast a 15 per cent increase in unit prices over the next two years in Sydney, suggesting recent comments that the market is entering a downturn are premature.
Additionally, while investors have led to a rise in apartment values in the New South Wales capital, data also shows a growing trend in owner occupiers entering the sector – a sign of a healthy market.
"Owner-occupiers increased from 39 per cent to 42 per cent of occupied apartment households between the 2006 and 2011 Censuses, with the North Shore, Southern Sydney, and Central Western Sydney regions reporting the greatest level of owner-occupiers," the report continued.
While many people assume the rise in apartment living can be attributed to empty nesters looking to downsize, BIS Shrapnel posits that it's actually younger generations driving the trend.
Of all the local government areas set to attract the new apartment developments, the City of Sydney easily leads the pack. This region is expected to attract 3,700 apartment approvals per annum until 2018/19.
Whether you're thinking about purchasing a luxury penthouse or a starter apartment that will appeal to a young office worker, Sydney is the place to be. With suburbs close to the harbour, the beach or the bush, there are price ranges to suit everyone's budget. Apartment living means you can live closer to the city to cut down the commute and enjoy some downtime when you get home from work.
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