Sydney CBD apartments outperforming wider market

Residential apartments are currently outperforming the rest of the Sydney property market in terms of sales, with the increasing population, changing demographics, stamp duty concessions, low supply levels and affordability concerns all having an impact. Apartment projects delivered at attractive price points in near CBD locations and integrated with social and transport infrastructures are experiencing solid demand.

Discovery Point, Australand’s master-planned community south of the CBD in Wolli Creek, is a prime example of the strong performance of apartments in Sydney. All apartments have now been sold in the fourth and fifth residential buildings, known as Linc and Arc, with all 214 sales being made within the past 12 months.

From a demographic perspective, there has been an increase in the number of people looking to downsize to smaller dwellings while still enjoying the features and convenience of a modern apartment. The increasing prevalence of smaller families makes apartment-style living a more reasonable long-term residential option than it was for previous generations.

The impact of stamp duty concessions for newly constructed and off-the-plan apartments cannot be understated either, given the affordability concerns affecting the Sydney market in particular. Stamp duty is a major affordability barrier, and any savings accessible here will understandably resonate with buyers.

Finally, well-located apartments are also more attractive from an investment perspective, and demand from investors for quality modern stock has supported the performance of the apartment market.

Developments such as Discovery Point and Clemton Park Village, which provide contemporary lifestyle options in close proximity to essential services and transport links, continue to appeal to savvy investors looking to take advantage of the low rental vacancy, strong rental returns and the decline in interest rates.

Nigel Edgar is Australand’s NSW residential division general manager.