There are many solutions to affordability issues. Rentvesting, guarantor partnerships and buying in Sydney's fringes are all popular methods of getting on the property ladder in light of recent price increases. However, these solutions all lack one auspicious factor: luxury.
For buyers who want premium property but are finding the increases in detached house value to be a roadblock, buying a luxury apartment is a clear-cut way forward. And considering the latest property demand statistics, it's a growing trend.
Sydney apartments rising above the rest
Apartments, classed as medium-density housing by BankWest, are on an unstoppable rise in Sydney.
In the year to March 2017, the bank reveals that Sydney was the only city in the country to see an increase in approvals (11.6 per cent) for apartments. With the national level of medium-density approvals down 6.5 per cent, Sydney is bucking the trend and surging forward to provide high-quality apartment opportunities for both owner-occupiers and investors.
While areas like Penrith and Baulkham Hills exhibited the fastest growth in apartment approvals, luxury projects like Crown Group's Waterfall development highlight the abundant opportunities for apartment living close to the CBD.
Growing apartment supply is matching demand
The cause of this spike in apartment approvals? According to BankWest's Stewart Saunders, migration is the key.
"In the five years to June 2016, the New South Wales population grew by 8.1 per cent to almost 7.5 million," he noted in an August 16 media release.
"New South Wales became home to 562,569 more residents during the five-year period – a figure that exceeds Tasmania's total population."
CoreLogic RP Data analysis indicates that NSW accounts for more than 40 per cent of Australia's overseas migration, and nearly 35 per cent of total net migration (including interstate). With sharp increases in migration numbers over the last couple of years, this medium-density supply is likely to move from strength to strength.
Finding the perfect luxury apartment in Sydney
While this spike in both supply and demand for apartments presents a great opportunity for buyers and investors, it can mean more competition to secure the very best on the market.
At Crown Group, we specialise in boutique, luxury apartment developments that cater to the finest tastes. However, they don't stick around for long. To get ahead of the demand and secure a piece of inner-city paradise, talk to our team today.