Monocle recently ranked Sydney as one of the top 10 most liveable cities in the world, for the second year in a row. The thriving economy, ever-strong property market and desirable lifestyle Sydney offers certainly have something to do with the city's enviable position near the top of the world's liveability rankings.
The case for living here is cut and dry – but what about the type of home you buy? Are luxury apartments going to give you everything you deserve? We have a closer look at the market to help you decide.
Prices are still on the up
CoreLogic RP Data suggests that Sydney's property prices may not be on their way down in the near future. At the start of the third quarter of this year the median dwelling price in Sydney sat at just over $996,000. In mid July this figure crossed the $1 million mark, a historical moment for the Sydney market.
Prices have continued a steady increase sitting at $1.04 million as of October 25. It's clear then that the general trend is upwards, a fact that bodes well for those looking to invest in property in the area and perhaps enjoy capital gains.
Units are a more affordable option
For those looking to access the many benefits of Sydney without the million dollar price tag, a unit or apartment may be the best option. A unit in Sydney is still likely to set you back a few dollars, however CoreLogic RP Data reports that their current median is $300,000 less than your average detached house.
Promisingly the value increases in this market are comparable to that of houses. This suggests that an apartment may be an equally prudent investment, all at a considerably lower entry point than a house in the same area.
Dwelling approvals remain high
you may be less likely to lose money when you buy and resell an apartment in Sydney.
A Housing Industry Association report on the NSW property market shows that at the beginning of this year housing starts remained incredibly high. In fact, in March 2016 they peaked at almost 18,000 new dwellings started for the month – the largest number in the city for over two decades.
Forward demand is looking strong and could match, or even exceed this figure in the near future thanks to population growth that Forecast.id expects will exceed 32 per cent over the next 20 years.
This is incredibly promising as approvals are a general indicator of the health of a property market at any given time. These high approval numbers indicate that demand is still at a high and that the future of the market is bright.
Turning a profit on your purchase
A recent CoreLogic RP Data Pain and Gain report shows that for the September quarter of this year only 98.2 per cent of units that sold in Sydney made a profit. This promising statistic suggests that if you buy the right apartment in Sydney you're almost guaranteed to make money on its sale.
Impressively apartments actually saw a higher proportion of resales for profit than even detached houses, of which 97.8 were sold at a profit during the same period.
The benefits of buying off the plan
These market conditions all point to the fact that buying luxury apartments off the plan in Sydney can still be a smart investment. Not only will you require a lower deposit to secure your home, but if the market continues in the direction it's going your investment will increase in value before you even step a foot in the building.
Crown Group can provide an insight into the apartment market in Sydney, allowing access to the most desirable premium accommodation that money can buy. If you're in the market for an investment or just a comfortable luxury home to live in, get in touch today.