Sydney apartments share housing limelight

There-could-be-a-5050-split-between-houses-and-apartments-in-Sydney_157_6003414_0_14100880_300Houses in Sydney have long been considered something of a golden goose in the property market, but change could be on the horizon. Sydney’s property market has the potential to become an area split evenly between residential houses and apartments in coming years, with figures from the Australian Bureau of Statistics revealing that the city has seen a boom in the number of units being constructed.

This revelation is one that looks set to change the face of living in the New South Wales capital. Recent ABS data shows that 70 per cent of housing approvals granted in Sydney were for apartments, which is an astronomical rise from 2011 when only 25.8 per cent of the 1.66 million homes in the city were apartments. At this rate, in the next half a century or so Sydney will become a city of two halves – half apartments and half suburban houses.

Chris Johnson, Chief Executive of Urban Taskforce, confirmed that the growing number of high density approvals are underpinning NSW’s strong performance in the Australian property market.

“Detached houses are relatively flat in trend terms compared with the apartment market,” he said in a February 3 release.

While there is likely to be an even split in the ratio of houses to apartments, land remains at a premium. High density living enables developers to build large volumes of dwellings in a relatively constricted spaces, but houses are likely to take up a large proportion of Sydney’s total land.

This is reflected in a separate study conducted by the ABS, which shows that Sydney has the largest population density in the country. Approximately 8,000 people live within a square kilometre, with a total of 21 kilometres of the city recording this figure.

As more and more people seek locations close to the CBD, transport and the desirable suburbs of the inner west, the solution is up. Purchasing an apartment in Sydney is an ideal investment opportunity and demand for this category of property is only likely to grow with Sydney’s population base. If you want to take advantage of Sydney’s apartment boom to expand your portfolio, speak to your local real estate agent.

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