Median property prices in Sydney will rise by around 2% to 3% in 2013: Carlie Ziri

The growing number of people choosing to downsize and reside in inner city apartments is a well-established trend that has been happening in international cities for quite some time.

In Sydney this trend has taken a couple of decades to surface, with large-scale building of major high-rise developments in the inner city only starting in the early 1990s.

In recent years, however, our most inner city area – spanning from The Rocks – Woolloomooloo has undergone a cosmopolitan makeover and new property developments have attracted an influx of diverse, wealthier residents who are embracing the perks of city living.

Most of the time these new developments offer spectacular views, have 5-star facilities that require no maintenance, and are located just minutes from work, fantastic restaurants, great shopping, entertainment, numerous transport options and everything else Sydney has to offer.

The shift toward apartment living in Australia, particularly in the capital cities, has been highlighted in recent ABS numbers.

Furthermore, stand-alone housing approvals are at recessionary levels, while apartment approvals are at an all-time high.

There are many factors contributing to the rise in inner city living.

A growing number of Sydney-siders are shying away from the great Aussie dream of a home with a backyard and a pool, in favour of an inner city pad.

Empty nesters are growing tired of maintaining large homes once their children have moved out, and many people are abandoning the long daily commute to be close to work, and adore the vitality, convenience and cosmopolitan vibe that the inner city offers.

This property trend is likely to continue as the population ages and we are already experiencing a surge in demand for 1-2 bedroom apartments in convenient locations.

With this amazing city maturing every year, conditions are ripe with rental demand being driven up by these affluent, corporate executives attracted to the lifestyle that accompaniesinner city apartment living.

I predict median property prices in Sydney will rise by around 2-3% in 2013; and over the next few years, I expect our fabulous city to become more and more like other mature international cities including London and New York where apartment living continues to thrive.

Carlie Ziri is the director of Lifestyle Property Agency.