The Inner Sydney Apartment (ISA) market has experienced a rise in demand for off-the-plan apartments in recent years, which has resulted in new supply reaching its highest annual total in fifteen years – staggering 3,350 apartments in 2014/15.
In light of this, BIS Shrapnel have released their Inner Sydney Apartments Market brief for July 2015, highlighting a number of key findings including:
- The market has experienced a rise in demand for off-the-plan apartments in recent years, which has resulted in new supply reaching its highest annual total in 15 years of 3,350 apartments in 2014/15;
- Within the ISA area precincts, during the three years to 2017/18 the South Dowling precinct will be the main source of new apartments in the ISA area, accounting for 49% of total new apartment supply, followed by the North Sydney precinct with a 23% share.
- The average population growth in the ISA area of 3.7% per annum has outpaced the rise across Greater Sydney of 1.2% per annum over the 23 years to 2013/14;
- An analysis of the age profile of apartment residents suggests three main groups driving occupier demand: students, younger adults, and older empty nester adults;
- After peaking at 2.2% at June 2013, vacancy rates in Inner Sydney have tightened again to 1.7% at April 2015; and
- Rental apartments account for 55% of total apartments in the ISA area, considerably higher than the 28% share across all Greater Sydney dwellings.
The report also breaks down Rents, Prices and Yields in the market; projected apartment completions by 2017/18; and findings on site sales within the market.