By Alex Stuart | 29 Aug 2017

Sydney’s new apartment market continued its steady performance in the June 2017 quarter, with sales stable and prices up, according to new research released today by leading property consultants, Urbis. 

With 731 recorded new apartment sales in the June 2017 quarter, of a sample of 20% of the market, the Sydney new apartment market achieved price and sales growth, despite the majority of sales being one-bedroom, zero car product.

Urbis Associate Director of Property Economics and Research, Alex Stuart, said that for the first time since reporting commenced, two-bedroom, two-bathroom product was not the dominant seller.

“One bedroom, zero car apartments made up 28% of total sales this quarter, just beating two-bedroom, two-bathroom product which contributed 27% of total sales. This is the first time we have seen this happen in our survey,” Mr Stuart said. “As well as higher sales rates of one-bedroom, zero car product, the weighted average sale price of this product type increased by almost $100,000 from last quarter. However, the weighted average sale price of two-bedroom, two-bathroom product increased by over $200,000 in the same period. Comparatively, one-bedroom apartments are still an affordable option.

One bedroom, zero car apartments made up 28% of total sales this quarter, just beating two-bedroom, two-bathroom product which contributed 27% of total sales. This is the first time we have seen this happen.

Thirteen projects containing 3,232 apartments launched in the June 2017 quarter. Mr Stuart said that at current supply and demand levels, the Sydney new apartment market was in a good place. “Looking at our survey sample, we have just over two quarters of apartment stock remaining for sale at the end of the quarter. The Sydney new apartment market is continuing confidently, and several new projects which launched in the Inner South Precinct have sold well.”

The Inner South Precinct recorded the majority of sales at 69% of total sales in the June 2017 quarter. Additionally, the weighted average sale price increased by over $70,000, despite the majority of sales being one-bedroom apartments. The Inner West was the second highest selling precinct, recording 19% of total sales.

“From our surveyed sample, apartment sales and prices all look healthy,” Mr Stuart said. “For the second half of 2017, I don’t expect this will change, steady sales will continue as Sydney apartments continue to be a viable option for both owner occupiers and investors.”

  • 731 sales, from a sample of 28 surveys, were recorded in the June 2017 quarter.
  • The Inner South Precinct recorded 69% of total sales, with two new project launches stimulating activity.
  • The weighted average sales price for the June 2017 quarter was $1,159,097 an increase of $150,788 over the previous quarter, and the highest weighted average sale price recorded for the Sydney Apartment Essentials.
  • One-bedroom, zero-car product was the most popular product type, making up 28% of total sales. This is the first time since reporting commenced that two-bedroom, two-bathroom apartment sales have been overtaken by another product type.
  • NSW investor sales accounted for 46% of total sales.
  • There were fourteen new apartment launches this quarter, equating to 3,416 apartments.