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.