By Alex Stuart | 5 Jul 2019

Sydney’s main agenda is to become a global city and what better way to achieve this than a brand-new airport and an interconnected transport system.

From the new Metro and expanded light rail network to Northconnex and Westconnex, apartment supply is likely to squeeze into built-up areas providing additional stocks to areas which were previously under-supplied due to poor transport infrastructure.

Urbis’ Apartment Essentials has been capturing and analysing the sales and supply data since 2015. Following, we highlight the potential impacts of Sydney’s infrastructure activity the city’s market. But first, sales…

Sydney experienced modest sales activity in the first quarter of 2019, with only 4% of available surveyed stock selling. Only a handful of projects achieved double digit sale numbers.

“We’re seeing a cautious market as buyers and investors anticipate a drop in apartment prices. With new infrastructure projects coming to fruition and reduced uncertainty following State and Federal elections, we may see increased interest in the coming quarters,” reported Mr Alex Stuart, Associate Director at Urbis.

Sydney’s Inner West recorded the majority of sales in the quarter (43%) while sales slowed around the rest of Sydney.

“The Inner West is in a slightly lower price bracket to Central Sydney and Inner South Sydney, sitting around the $1.1 million mark, but the weighted average sale price in the North West Middle Ring and Canterbury Bankstown precincts is significantly lower, in the $600,000s,” Mr Stuart observed.

The Sydney Metro is a key infrastructure project which will see The Hills region and beyond better connected to Chatswood and the Sydney CBD. The apartment pipeline is experiencing increased activity in areas of infrastructure investment, with over 10,000 apartments approved for development and a further 5,700 awaiting a decision in The Hills.

The latest light rail addition to the NSW transport network between the Eastern Suburbs and the CBD will also impact the apartment market. Testing of this service is currently underway and while a further 3,200 apartments have been approved for development in the Eastern Suburbs, we may see an overflow of existing and new residents flocking to the transport-enabled areas.

“There are a number of projects flagged for marketing launch in the next quarter, so it is likely that we’ll see a modest push in sales in the North West Middle Ring and the Canterbury Bankstown precinct,” Mr Stuart said.

Over 1,000 new apartments are anticipated to launch later in the year which may also drive sales towards the tail end of 2019. With 12,500 apartments under construction and 2,000 already completed in Q1, it seems that developers are well prepared for when the market conditions improve and buyers direct their attention to areas serviced by new infrastructure.

Meanwhile, the number of units currently under construction has fallen from 2018 levels and with most projects taking longer to achieve required pre-sale levels to proceed to construction. We expect to see a significant drop in completed new apartments in 2020.

In the context of a low sale volume quarter, foreign investors were most interested in Sydney stock, accounting for 32% of buyers. While interstate investors continued to look beyond the global city in favour of more affordable markets such as the Gold Coast. Owner occupiers made up the majority of purchases with 44%, while local NSW investors hovered around 24%.



  • Weighted average sale price recorded: $1.1 million
  • 3 project launches in the quarter: 485 new apartments
  • 16 projects were built in the quarter: 1,948 apartments


Contact our Property Economics and Research team to find out more.

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