Sydney apartment market starts to spread
There is little argument that the Sydney property market, while not quite moving at the same furious pace as two years ago, remains the site of many of Australia's most valuable real estate transactions. The growth in demand for inner-city apartments in particular has been rapid, leading to a number of the city's suburbs becoming the most expensive and exclusive residential areas in the country.
That's no exaggeration – in fact according to CoreLogic RP Data the top 10 most expensive suburbs nationally as at December 2015 are all in Sydney. Point Piper sits atop that list, with a whopping median unit price of $2,219,503. That's excellent news for those who own multimillion-dollar apartments in inner Sydney, not so much for people wanting to buy in these areas.
Approvals for new apartment complexes in Sydney's middle ring have overtaken the inner city.
Perhaps it's no surprise, then, that people are sending their buyer's agents a little further afield in their search for apartments to buy. The recent Apartments in Sydney Suburbs Market Brief from BIS Shrapnel found that approvals for new apartment complexes in the middle ring had overtaken the inner city for the first time, seen as a symptom of the city's affordability crisis.
Who is buying Sydney's apartments?
Addressing the unsustainable demand for housing in Sydney has been an issue for some time, with one method of lowering the median house prices being the construction of many new unit complexes. Last year was a record-breaker for housing approvals across the nation according to the Housing Industry Association (HIA), and BIS found that 55 per cent of all new apartment approvals in Sydney were made in the middle ring.
As for who is actually driving the demand for Sydney's apartments, Angie Zigomanis, senior manager of residential property at BIS Shrapnel, told Property Observer that the majority of buyers were older, selling their larger family homes that they no longer need.
"The majority of owner occupiers coming into three bedroom apartments are downsizers and are buying with full equity," he said.
Sydney auction market springs back to life
While there have been concerns that the overheated Sydney property market is set to burst, based in part on dwindling auction results, there are early indications that buyers are finally into the swing of the new year. After plummeting to a surprising 43.2 per cent in the final weekend of January, the city's auction clearance rate leapt back up to 72.5 per cent the following week, the highest result since September 2015 according to Domain.
Seeking the assistance of an expert buyer's agent can give you an ally inside the real estate industry.
While the spectacular highs of the current property boom continue to elude the market – the same weekend last year saw clearance of 82.5 per cent – the massive recovery from the previous week is an encouraging sign. At a time when Melbourne has taken over as the country's best-performing property market, Sydney investors are likely clinging on to positive indications wherever they can find them.
Finding the best apartment in Sydney
With HIA statistics showing well over 200,000 new residential approvals in 2015, you can expect potentially many thousands of new apartments will become available in the coming months. If you're in the market for a new home or investment opportunity, what is the best way to go about finding precisely what you're looking for?
Seeking the assistance of an expert buyer's agent can give you an ally inside the real estate industry, someone who can take your unique requirements and track down any suitable properties you may be interested in.
Making use of Cohen Handler's deep connections to real estate professionals can result in a swift property search, often resulting in the purchase of off-market properties well below market value. Whether you're joining the throngs of people investing in middle-ring apartments, or searching for a first home in the suburbs, our buyer's agents have the skills to take you through the process.