Sydney Residential Development m3property Insight - Sydney’s apartment market and what lies ahead?
“Oversupply of apartments and weakening investor demand off the back of reduced finance resulting from the Hayne Royal Commission will continue to impact the residential market over 2019. Return to growth and improved market conditions are expected from mid - 2020 onwards”
Sydney’s apartment market and what lies ahead?
Inner and Middle Ring
Oversupply of apartments launched in 2017 and completing over 2018 and 2019.
Vacancy exacerbated by subdivision and greenfield development as well as infill apartment development, despite continued strong population growth.
Solid population growth, improved housing affordability and increasing wages growth should see demand strengthen and reduced apartment completions over 2019 and 2020 should see the imbalance between supply and demand turn back towards an undersupply of dwellings by mid to late 2020. This should result in falling vacancy and rising unit prices in 2020 and 2021.
“Sound market fundamentals will result in modest growth from mid-2020 onwards”
Population growth set to absorb excess residential stock from 2020