But in the next five years, the Australian property market will experience an oversupply of apartments nationwide, reports BIS Shrapnel.
Only about 150,000 to 165,000 dwellings would be needed as population growth falls, against a supply of 214,000 by 2017, said BIS Shrapnel managing director Robert Mellor.
When it comes to units in Sydney, however, the city is not yet oversupplied – unlike its counterparts in Melbourne and Brisbane – which means investors priced out of the house market may still be keen to consider an apartment investment.
“There will be oversupply in all cities except for Sydney. The pain will really be felt in 2017 and 2018,” Mellor said.
This allows the Sydney market to support new projects such as Arkadia, a new apartment complex earmarked for the historic suburb of Alexandria, which has just been launched by Defence Housing Australia (DHA).
Arkadia will comprise 152 modern apartments and terraces. DHA plans to retain over half of the dwellings, to provide accommodation for Defence Force personnel. The remaining 71 studios, one-bedroom and three-bedroom properties will be offered to the public for sale, priced between $550k and over $1million.
“We have already had a lot of early interest in Arkadia. We’re seeing a mix of young professionals, couples and families attracted to the serene location by Sydney Park,” said Ian Bennett, Director at Colliers International.
“Buyers have been drawn to the flexible lifestyle that comes with modern apartment living and the opportunity to combine that with open green spaces so close to the Sydney CBD.”
Construction on the new apartment complex is set to begin next year, with completion expected by June 2018.
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