Strata development expected to accelerate

95Strata dwellings are increasing in popularity as young couples and families feel the squeeze when buying property in Sydney.

However, there are still opportunities for both home buyers as well as investors.

Shift to strata

“The escalating cost of buying real estate is forcing a greater proportion of the younger population into medium to high density living,” explained Real Estate Institute of New South Wales Director Gary Adamson in a March 11 news release.

Sydney property investors are able to use their existing equity to their advantage and buy houses for renters wanting roomier options.

Meanwhile, strata investment also remains a legitimate option for both investors and home buyers who cannot afford low-density dwellings but are able to comfortably secure an apartment.

It’s clear that strata is the way forward for Sydney, as increasing population pressures and rising house prices cause residents to rethink their traditional notion of “home”.

Wide appeal of high-density dwellings

Strata dwellings are not just an option for inner-city professionals or young couples, as units are a popular option for elderly residents too.

Mr Adamson explained that ageing members of the population are the “fastest growing portion” and may no longer be in a position to maintain a large backyard or complete home maintenance, making strata a popular choice.

Urban consolidation in NSW

It’s clear that both younger and older members of the the population are shifting to strata options.

This has been largely enabled by “long-term government urban consolidation policies”, according to Mr Adamson.

“As a result, the development of strata and community title properties now exceeds the number of free-standing dwellings being constructed in New South Wales and the move is expected to accelerate in years to come,” Mr Adamson said.

The NSW capital is a front runner for high-density housing, with a February Bankwest report noting that the inner city areas of Sydney, Brisbane and Melbourne saw the highest proportion of medium density dwelling approvals nationwide over the last two years.

“It is essential that the legislation is developed to cope with this relatively new and fast growing trend in residential accommodation,” stated Mr Adamson.

Leave a Reply

Your email address will not be published. Required fields are marked *