Stability in Sydney apartment market as confidence continues

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Larger apartment product in waterfront locations is attracting downsizers. Owner occupier product accounted for 34% of surveyed sales this quarter, and we are also seeing a healthy interest in the local investor market.

“In the September 2015 quarter we saw a peak of apartments in development application status approved. In the December 2016 quarter this number is now just over 4,000 apartments, similar to the number of apartments we saw launch this quarter,” Mr Stuart said. “The apartments with development approval are now launching to the market, but the levels of supply and demand remain steady and stock is being absorbed at a healthy rate.”

Mr Stuart noted that within the surveyed sample evidence of a strong local market can be observed. Concurrently, three-bedroom plus product made up 23% of sales in the December 2016 quarter, compared to 12% in the previous quarter.

“Larger apartment product in waterfront locations is attracting downsizers,” said Mr Stuart. “Owner occupier product accounted for 34% of surveyed sales this quarter, and we are also seeing a healthy interest in the local investor market.”

The outlook for the Sydney apartment market remains positive. “We are still seeing high levels of demand within the Sydney new apartment market,”’ Mr Stuart said. “I don’t see this demand slowing anytime soon, however it is important to note that new apartment approvals are stabilising, keeping the market ticking along at a healthy rate.”