New apartment demand in Sydney rebounded to its highest level in four years. in the September quarter, a surge in housing prices shifted attention back to the more affordable unit market. Unplanned sales tracked by Urbis showed 15 per cent of apartments available for purchase were swapped during the quarter, Sydney’s highest level of sales since 2017, nearly double the 8 per cent figure recorded in the second quarter and nearly four times higher than sales levels. 4 percent recorded at the beginning of the year.
Sydney is showing signs of recovery post-lockdown, said Urbis director Mark Dawson. “House prices are pushing down on affordability and along with tighter debt curbs; apartments can be an attractive option for many people in the market.” In contrast, Melbourne’s more affordable apartment market, which has historically relied more on unplanned sales to investors and overseas students, weakened further during the September quarter.
According to Urbis, only 5 percent of available stock was sold during the September quarter, down from 7 percent and 11 percent in the previous quarter. Mr Dawson said Melbourne’s tougher lockdown, in contrast to Sydney’s greater freedoms (such as the ability to physically inspect property at all times), also contributed to a weaker atmosphere in the Victorian capital.
Despite these low sales figures, he said Melbourne developers might follow Sydney and enjoy the improved atmosphere as the city next emerges from lockdown. The prospect of reopening international borders, having the return of foreign students and their mother-and-father investors, could also feel like reinvigorating Melbourne’s hardest-hit inner-city apartment market, Dawson said.
Also driving the return of investors could be the new CoreLogic figures showing the quantity of rental apartments available rental apartments available apartments available in Melbourne members in a 46 per cent drop since February (after rents fell by more than 30 per cent), as well as much better value for money – the average price of Melbourne apartments in th. to September was $746,000, compared with $1.28 million in Sydney.
Leading off-the-plan costs – as they have been for years. – is booming is booming gold apartment market Gold beach apartment market Gold beach apartment market, where 56 percent of available stock was sold during the September quarter, up from 42 percent in the June quarter.
Brisbane’s neighboring market has also benefited from an influx of state-to-state investors into Queensland and the demand spirit boosted by the city winning the 2032 Olympics bid, as 39 per cent of apartments offered for sale were seized during the September quarter, a sharp increase from 24 per cent in the previous quarter.
Nationally, Urbis expects 9732 fewer apartment completions in 2021 compared to 2020 and 19,698 fewer than when the market peaked in 2018 – mainly due to slowdowns in Sydney and Melbourne, delaying new project launches. However, supply is expected to feel increased as Sydney and Melbourne re-access the Gold Coast, Brisbane and Perth markets which are consistently selling through current inventory.
“The possibility of supply must be mobilized quickly to counter the effects of increased immigration as border restrictions continue to erode,” Dawson said. “This is especially true after a four-year period. where launch, approval and app volumes are trending downwards across the country.” in line with the increasing proportion of sales to owner-occupiers since the pandemic – 35 percent of sales to investors is the lowest level Urbis has recorded since surveying the apartment market in yr. 2015 – demand for larger apartments is consistently increasing, along with actual sizes of two and three bedroom apartments.
On th. As of September, 27 percent of apartments sold had three or more bedrooms, while 55 percent had two bedrooms. Only 18 percent are one-bedroom apartments or studios. In contrast, only 15 percent of apartments sold in the pre-pandemic third quarter of 2019 had three bedrooms or more, while a third of apartments sold were single bedrooms or studios.