Samantha Hutchinson & Ben Wilmot
21 December 2015
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Property developers are backing a series of apartment towers in Sydney with more than $500 million being poured into fresh projects before year end despite warnings of weaker demand for units as some areas hit saturation point.
However, other analysts are pointing to signs that inner-city markets remain in balance, despite the elevated volumes.
“The September quarter marks the first time since December 2014 that the number of apartments available for sale was roughly equal to the number of apartments sold. In other words, supply is aligning with demand,” Urbis economic and market research director Malcolm Aikman said.
Sydney and Melbourne’s apartment markets are also close to equilibrium, according to Sydney-based economist Clinton Ostwald, who noted that both cities had a considerable amount of new units in the pipeline. “I don’t think people should panic about any short-term increase in vacancies, because it will be taken up quickly,” Mr Ostwald said.