The Developer View: How the Sydney off the plan apartment market is faring heading into 2024
Sydney apartment developers are feeling confident in 2024.
That's been the headline from conversations in the first six weeks of the year from developers across Sydney. Just as importantly, that's been the feedback from the project marketers too.
Read more: A Project Marketing View: How the Sydney off the plan apartment market is fairing heading into 2024
Joe Nahas, Managing Director at Coronation Property, is expecting a strong market this year, however buyers have changed in recent years.
"Buyers are more discerning when it comes to the developer they choose and are not willing to accept anything short of exceptional built quality," Nahas says.
"Buyers today are very different from those five years ago. Buyers are demanding more and wanting to invest in a lifestyle, not just an apartment. They want more space within their homes, seeking residences that are functional and offer an evolving space to grow. They are wanting the resort-style amenities, outdoor spaces and access to shops and dining on their doorstep."
It's placemaking which Coronation are doubling down on currently and in their future pipeline. Having already delivered the successful Paper Mill Precinct in Liverpool, their focus now is on Mason & Main, which will bring Merrylands its largest ever mixed-use precinct, and Ashbury Terraces, a rare proposition in a suburb where apartments and terraces are at a premium.
Coronation has three new projects which are likely to launch this year, the first being Erskineville Village.. They also have a Woods Bagot-designed tower in Chatswood and another project in Ashbury.
"Across all our off the plan projects, we are finding buyers are desiring the best of modern design, quality build, and convenient connectivity," Nahas added.
Deicorp, one of Sydney's busiest developers year on year, echoed the sentiment. Deicorp's Executive Manager Robert Furolo said the signs are positive that 2024 will be a strong year both for buyer inquiries and conversion to sales in the apartment market.
"Young families, professional couples, and downsizers are all still looking for the lifestyle benefits of convenient and affordable apartment living," Furolo said.
"Together with the ongoing undersupply of new properties in the market, and the return of investors, we are confident of finding buyers for every new home we build and deliver."
Deicorp has just launched their first new project of 2024, Cosmopolitan by Deicorp in Parramatta. The two 46-level, side by side towers designed by Turner Studio will home over 600 apartments above retail in the heart of Parramatta on Hassall Street.
Deicorp will also look to launch Marquet & Mary, their $310 million, Fender Katsalidis-designed mixed-use tower in Rhodes, some 214 apartments across 32 levels, while later this year their Melrose Park masterplan is expected to kick off.
Deicorp is working with PAYCE to create a new $700 million Melrose Town Centre, which will turn a 55-hectare patch of dirt just outside of Parramatta into a fully mixed-use community.
Turner Architects has drawn up the plans which will see just under 500 apartments delivered across six buildings, as well as commercial, retail, a child care centre, and medical premises in the podiums.
Not to forget Deicorp's current pipeline. They'll be completing construction on Downtown Zetland and The Ashford in Castle Hill, as well as the first stage of their Tallawong Village project near the Tallawong Metro Station. They will also launch a new release of apartments in the 430-unit Hills Showground Village development, also in Castle Hill.
Lower North Shore developer Hyecorp saw success over the break at their under construction St Leonards project, Audrey.
Hyecorp Sales Director George Benlian secured the sale of an apartment with the highest price per square metre rate within the building.
“As January unfolded, the off the plan apartment market embarked on its annual dance of unpredictability," Benlian said.
"The month, typically characterised by a lull in activity due to holiday festivities, didn't deter the stream of inquiries. Although many potential buyers were still immersed in their vacation mindset, the real action was set to unfold upon their return to the daily grind."
Benlian said while the majority of purchasers hailed from the local area, some buyers have made the decision to downsize from the Hills District and relocate closer to the city.
"The strategic location of Audrey St.Leonards emerged as a key selling point, positioned opposite the scenic Newlands Park and a mere 400 meters away from a conveniently accessible train station.
"These factors contributed to Audrey's appeal, attracting a diverse range of buyers seeking not only a property but also a lifestyle upgrade."
Benlian believes the economic data which has emerged this year will spur buyers on later in 2024.
"The anticipation of this positive shift in the economic landscape will be encouraging more individuals to make their move in the property market, setting the stage for an optimistic outlook in the coming months."
Hyecorp recently launched Juliet, their boutique 35-apartment project in Roseville.
Read more: Hyecorp reveal latest North Shore apartment development, Juliet Roseville