Sydney apartment approvals down 30% in one year: JLL

Sydney apartment approvals down 30% in one year: JLL
Sydney apartment approvals down 30% in one year: JLL

Sydney’s median apartment price has dropped 3.2% since last year, according to key market indicators from JLL Research, the ABS, REIA, and CoreLogic.

Sydney apartment approvals down 30% in one year: JLL 

The downturn has led to a parallel decline in the number of new developments being approved (with a fall of 30.6%), as well as a reduction in the overall number of apartments sold (with a fall of 21.5%).

While the median cost of renting has also dropped (by 0.5% for one bedroom units, and 0.7% for two bedroom units), it has not fallen at the same rate as outright apartment values. Gross rental yields have increased by a tenth of a percent.

Sydney apartment approvals down 30% in one year: JLL

Throughout the rest of the country, the Gold Coast and Adelaide both experienced decelerating positive growth in the year’s second quarter, while Canberra, Melbourne, Perth and Brisbane all saw decelerating negative growth in the same time period. No city in the study kept up with long term average growth.

Sydney apartment approvals down 30% in one year: JLL

The significant drop in the number of apartments either completed, or under construction, in 2019 (compared to last year) is exaggerated by the unprecedented number built during 2018, and does not appear to be indicative of a long term falling trend.

This year there are more apartments completed, or under construction, than were built in 2017 or 2016.

Furthermore, the development plans already submitted, approved, or under construction over the next four years indicate a stable supply of new apartments.

Sydney apartment approvals down 30% in one year: JLL

When geographically extrapolated, the research demonstrates that the city’s inner south has the most new apartments planned, approved, under construction, or completed between 2019 and 2023 (at 8,297), followed closely by the inner west (7,789).

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Sydney Apartment Market

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