Is Sydney the apartment capital of Australia?
Rapidly-growing cities in Australia and a huge increase in population from overseas driving up demand has resulted in a positive boom in the apartment market. Sydney, our most populous city, has always been known for high-density unit developments, but with the continued rise of Melbourne and an increase in housing supply across Australia, does it still hold the apartment crown?
Let’s take a look at three ways in which the Harbour City continues to dominate the unit sector.
There are still apartment bargains to be found.
There’s something to be said for having a diverse range of options when it comes to property – a higher supply usually means a cheaper price tag, after all. While real estate in Sydney is certainly expensive, there are still apartment bargains to be found: Especially in light of the 4,000 plus non-house dwelling units approved over April, as reported by the Australian Bureau of Statistics.
On the other hand, volume can only do so much for an investor: higher supply meeting demand might make it more difficult for your property value to grow. Plus, a 25 per cent year-on-year growth in a $200,000 property pales in comparison to even 10 per cent on a $750,000 asset. If you’re after high value, you should still be keeping an eye on New South Wales and, to a lesser extent, the Australian Capital Territory. Cordell reports $3.4 billion worth of apartments being built across these states, including big Sydney projects like the luxury Infinity in Zetland.
The unit market in Sydney still remains exceedingly strong.
But what can high value do for you if you don’t have growth? If you are looking for capital gains, then you should definitely be levelling your gaze at Sydney. Despite a general moderation in values across the city over the last few months, the unit market in Sydney still remains exceedingly strong. CoreLogic reports a 11.51 per cent increase in apartment values over the 12 months leading up to the end of April, compared to a 5.56 per cent growth in the next nearest competitor: Adelaide.
Plenty of choice, great high- and low-price options, and a huge amount of capital growth that is bucking the property moderation trend. Clearly, Sydney apartments have plenty going for them! So, if you’re looking for a new property for sale as a first home or your next investment, make sure you keep the real estate haven of Sydney in mind. This iconic city has plenty to offer if you’re looking for apartment living.