Sydney unit sector makes gains
December 24, 2013 / Written by Rich Harvey
While much attention has been focused on Sydney's booming residential house market, investors would be wise to consider activity in the multi-unit market.
According to the Australian Bureau of Statistics (ABS), the trend estimate for total number of dwelling units approved in New South Wales during October increased 1.3 per cent. This number has also risen for 21 months.
Meanwhile, the trend estimate for the number of private sector houses actually fell during the same time period after rising for 18 months, decreasing 0.2 per cent during October.
Urban Taskforce CEO Chris Johnson said in a December 2 media release that apartment approvals in NSW in October reached 2,620, while house approvals only reached 1,684, showing that the Sydney apartment market is "growing dramatically".
The value of multi-unit housing has also mirrored that of traditional properties, rising steadily over the past few months.
"The Sydney housing market recorded strong levels of buyer activity through 2013, with record levels of buyer and seller activity reported during the spring home auction season," stated an Australian Property Monitors report from December 5.
"Sydney's median house price has increased by over 10 percent in 2013 to record-high levels now well over $700,000."
Meanwhile, the same report showed the median price for a unit in Sydney increased to more than $500,000 for the first time ever this year.
For investors seeking a cash flow positive property, apartments, townhomes and other multi-unit properties in Sydney can offer a lot of opportunity.
This is especially true for investors who may have many properties that need looking after and can only devote so much time and attention to a single one, as units are much easier to maintain and manage when compared to traditional houses.