Sydney apartment approvals ‘solid’

23.1.14New building growth in Australia looks promising, according to recent figures from the Australian Bureau of Statistics (ABS).

Building approvals for private sector dwellings excluding houses in Australia increased by 2.2 per cent from November to December 2013, according to a February 3 release from theĀ ABS.

Growth in apartments for NSW

The Urban Taskforce released a statement on the same day highlighting “strong upward growth in high density apartments and non-residential in NSW.”

“Apartment approvals continue to move solidly upwards in NSW. This indicates a continual shift towards urban living fuelled by low interest rates and off shore investments,” stated Urban Taskforce CEO Chris Johnson.

Easing Sydney supply pressures

With home buyers and investors eager to edge in on the Sydney property market, new developments could help ease supply pressures and open up new options for buyers.

Mr Johnson pointed out that the impressive spikes in Sydney’s house prices “are encouraging investors but the high prices have only come from a shortage of supply.”

However, it’s hoped that future development will be stable over time.

“The apartment approval boom does not necessarily mean that they will all be built in the near future. A number of very big projects are going through the planning system that will lead to construction over many years,” noted Mr Johnson.

Mr Johnson stated that developer and investor confidence is a crucially important issue.

However, he also noted that “without reforms to the state’s planning system housing supply will not flow through on a consistent basis.”

Sydney property investors would be wise to keep an eye out for potential investment opportunities that arise – whether it’s commercial projects or residential apartment living – as developers attempt to keep up with demand.

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