Just how big is the apartment boom in Sydney?
August 28, 2014 / Written by Rich Harvey
There has been further backing of the Harbour City, with industry analyst BIS Shrapnel stating the inner Sydney apartment unit market will continue to boom in the next couple of years.
This is due to a number of factors: large-scale investor demand, diminishing vacancy and interest rates, as well as the anticipated rise in prices over the next few years.
Mr Angie Zigomanis, senior manager at BIS and report author, says that investors came to Sydney's apartments because of the low interest rates, and have stayed for the capital gains. While the vacancies have stayed slim for now, there is a lot of construction still to be completed - this should see even more investment come through. BIS Shrapnel estimates there will be a whopping 11,500 apartments finished in the next three years alone!
There is expected to be a jump in owner-occupiers moving into apartments, but not enough to keep up with construction, so there will be a healthy flow of units available for investment.
Mr Zigomanis also expects the median price for inner Sydney apartments to increase about 6 per cent annually over both 2014-2015 and 2015-2016, making these units a mouthwatering prospect for potential investors in the central city market. They expect this to keep going through to a total of 21 per cent price growth for apartments by 2021.
If you have been looking to buy investment property in Sydney, these figures will be music to your ears. Strong growth and more housing units to come means the conditions to invest are perfect. If you don't have a buyers agent for Sydney then now may be the time to get one. Through a long list of contacts, they can access property before it goes for public sale - getting your foot in the door on these apartment profits ahead of the market.