The Sydney market is experiencing a phenomenon called ghost tower syndrome— characterised by a record number of empty apartments, an increasing shortage of buyers and tenants, as well as record new supply.
Data show that a total of 9,446 apartments are listed for sale in NSW’s capital—and over 20% – or almost 2,000 of them – are new.
In addition, there is also a glut of rental units without a tenant, according to My Housing Market Chief Economist Andrew Wilson.
Parramatta, Liverpool, Ryde, Chatswood, and Bankstown, alongside the city, have to face the pressing issue.
A total of 16,201 units are still available for occupancy in Sydney – up more than 50% over the previous year. The figure is a reflection of the increasing unit vacancy rates – up from 2.1% to 3.3% over the same period.
Nine.com.au reported that developers had not offered a fire sale, given that they have a buffer of profits from thriving years. Big discounts, though, are likely to come.
It will take time to absorb unit listings, according to Wilson. There is currently a drop in new tenants due to a spike in first-home buyers, a significant decline in migration, and more new stock coming into the market. Hence, a lot of new apartment buildings could potentially remain ghost towers, he said.
