Sydney apartment market in decline, Ballarat units at peak: HTW property clock
Units in Melbourne, the NSW Central Coast, the Gold Coast and Newcastle are still at the peak of the market according to the August property clock from Herron Todd White.
Apartments in Ballarat are now at the peak of the market, with the Sydney apartment market starting to decline.
Units in Melbourne, the NSW Central Coast, the Gold Coast and Newcastle were at the peak of the market in July, apartments in Cairns, Townsville and the Whitsundays were ranked at the bottom of the market and apartments in Sydney, Ballarat and Dubbo were approaching the peak of market.
In the August report, HTW said Sydney is fast becoming a vertical city, with a change in buyer expectations and a surge in demand for apartment living.
As a result, modern, medium to high density zones are becoming increasingly common with many notable precincts springing up across the city including Green Square at Zetland, Harold Park at Forest Lodge, Discovery Point at Wolli Creek, Central Park in Chippendale as well as developing precincts in Erskineville and Camperdown (to name a few).
"Another example of an investor hot spot is the area known as Kings Cross," HTW said.
"Kings Cross is one of Sydney’s highest density precincts and covers the suburbs of Potts Point, Elizabeth Bay and Rushcutters Bay.
"It is well established, being within two kilometres of the CBD, and has a train station, light commercial buildings and retail spaces.
"Recent changes to laws governing the opening hours of entertainment establishments in the area has allowed the precinct to begin to shed its reputation as a somewhat unsafe nightlife district allowing it to become increasingly popular with investors.
"Investors targeting this area in the past have been seeking the strong rental returns offered by the many small studio and 1-bedroom units.
"It seems to be the trend however that many small studio units have lower levels of capital growth than standard 2-bedroom units for example which we assume is also due to the broader market appeal.
"In western Sydney the new apartment market continues in various degrees throughout all major regional zones with the Liverpool/Fairfield areas as well as Parramatta and The Hills district in particular seeing substantial development.
"The Norwest Railway line currently under construction from Rouse Hill to Epping has resulted in a signi cant increase in unit developments approved or under construction in what is typically considered the burbs, with unprecedented construction occurring particularly in Kellyville.
"This list in western Sydney is continually growing with a record number of unit approvals passed over recent years.
"What these areas have in common is that they all appear to have a high investor contingent although the future of some will depend heavily on an unknown tenant pool with oversupply perhaps becoming a future issue."