Boost in buyer confidence post elections stimulates Sydney apartment sales

Two projects lifted Sydney’s results in the quarter, accounting for 44 per cent of total sales. “Sydney siders are still in need of affordable, well located homes. Both of these projects achieved average sales prices under the overall weighted average sales price of $818,132 for the quarter in Sydney,” reported Mr Stuart. 

The overall weighted average sale price dropped by $274,000 in the quarter, highlighting the higher proportion of sales of more affordable product.  

Sydney saw record levels of apartments enter the market last year, with over 21,000 apartments completed in 2018. These figures will decrease going forward, with 14,466 apartments anticipated to be completed in 2019. “Vacancy rates across Sydney have increased with the injection of new apartments into the market,” Mr Stuart said. “Over the balance of 2019, the rental market will absorb these new apartments, which will place some pressure on rents in the short term.  This period is anticipated to be relatively short lived with strong population growth combined with slowing completions reducing pressure on the market.” 

Owner Occupiers accounted for 57 per cent of sales this quarter, followed by local state investors (35 per cent). The growth in domestic buyers reflected the increased confidence among both owner occupiers and investors as a result of the election outcomes and lending regulations. Foreign Investors only accounted for 8 per cent of Sydney sales, which is the lowest proportion of foreign investor sales Sydney has seen in quite some time.  

The Sydney Home Purchaser Sentiment Survey conducted jointly by the UDIA and Urbis reported that overall, consumer sentiment towards the Sydney property market is optimistic, with 59 per cent of survey respondents indicating that they were positive about purchasing in the current market. “The other interesting result indicated by the survey is that areas with high levels of infrastructure investment are showing higher levels of positive sentiment,” Mr Stuart said. “Western Sydney showed the highest level of positive sentiment with one in four residents looking to purchase in the next 12 months, in line with infrastructure investment in the area.   

Among the monitored projects there were over 3,000 units across 15 projects that were approved in the quarter. This represented growth from the 1,070 units that were approved in the March Quarter, which was the lowest level since Urbis started monitoring development approvals. 

• Weighted average sale price recorded: $818,132 
• Three projects totalling 216 apartments launched in the quarter 

• One bedroom, one bathroom most popular product type with 46 per cent of total sales

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