New housing data released by the Australian Bureau of Statistics shows that the Sydney market is gathering pace, fuelled by a demand for apartments significantly outstripping that for single dwellings. In November, approvals were granted for the building of 1805 apartments in Sydney, more than tripling the October figure.
As most new residential construction is in established, inner suburbs, Sydneysiders’ growing preference for apartments, villas and town-houses over detached dwellings is indicative of a preference for homes close to the city and beaches and with access to good public amenities.
“Apartments are a life-style choice,” said Christian Payne, Deputy President of the Real Estate Institute of New South Wales. “Rather than buying a house with a yard that needs maintaining, people want accommodation that provides them with a more comfortable, less stressful life.
“Other reasons that are driving the popularity of apartments are people wanting to escape the cycle of ever-increasing rents, couples downsizing to smaller homes now that the family has grown and from those looking to reduce the size of their mortgage.”
Mr Payne said the current share-market volatility is also attracting some property investors back into the market.
“The very tight rental market, which has seen vacancies drop to less than 1% in Sydney, is pushing up rents and making property investment an attractive alternative to shares,” he said.