City Beat August 2024: Sydney's new apartment market secures record sales and city-shaping development plans
The unit market in Sydney, both established and new, is ramping up.
CoreLogic's Monthly Hedonic Index shows another 0.4 per cent gain in the value of units across July, compared to 0.2 per cent in the house market. It's the fourth consecutive month units have outperformed houses according to CoreLogic's Index.
While only modest growth compared to the likes of Brisbane (+1.9 per cent) and Perth (+2.1 per cent), Sydney's unit market continues to show resilience despite being the most expensive capital city in an environment of heightened interest rates.
The Sydney unit median is now $852,000, more than $200,000 more than the next capital (Brisbane, $638,000).
Sydney's new and off the plan apartment market hasn't taken a break in winter either.
There's been record-breaking sales, new apartment developments launched to market, and several suburb-shaping development applications submitted to various councils across Greater Sydney in July.
What happened in Sydney’s off the plan apartment market in July
Winter did not hinder apartment sales in Sydney’s Norwest.
Sekisui House Australia secured over $85 million in sales within a few hours of the new apartment release at its $1 billion masterplan The Orchards
Veue Parkside features 156 apartments distributed across two buildings, each standing nine and 14 levels tall.
More than 80 sales came on the day, the majority being for the two-bedroom units.
Sales Manager David Lee said buyers came in large numbers to secure a carefully curated apartment in Veue Parkside, which he called "an architectural masterpiece."
July saw the record sale of an apartment in the Eurobodalla Shire.
The penthouse atop Kailani, the only new apartment development in Batemans Bay, sold for $2.75 million, a record for the whole region. The four-bedroom penthouse crowns the low-rise Beach Road building that is currently under construction by builder-developer KELA Building Group.
McGrath Projects agent Adam Sparkes said the buyer was also a local and is intending on reconfiguring the large floorplan.
Princeton Financial Services launched its Rockdale development to the market in July.
Marque Rockdale comprises 58 one, two, and three-bedroom designer apartments that are ideally located to take advantage of living on the coastal peninsula.
Marque will also be the first development in the area with Resilience Latent Defects Insurance, the first defect insurance in Australia that covers the cost of structural defects for 10 years post-completion of the building.
July also saw the topping out of the second stage of Mason & Main in Merrylands, the $700 million masterplanned precinct by Coronation Property.
The celebration was marked with an event attended by Coronation Property's owner Joe Nahas, contract partners, suppliers, and executive staff.
Mason & Main Stage Two consists of 415 build-to-sell apartments across two buildings, offering studio, one, two, and three-bedroom configurations.
There was plenty activity in the development application space across Greater Sydney in July, namely from Deicorp.
They first filed plans for Joynton Square, another community-style development in Zetland. The mixed-use precinct at 130 Joynton Avenue, pegged at just over $300 million, will see 574 apartments delivered across nine buildings designed by Fender Katsalidis and Candalepas Associates.
Read more: First look exclusive: Deicorp submit plans for Joynton Square, mixed-use Zetland precinct
One of the buildings in the Zetland precinct
Deicorp then went again later in July, filing for just under 1,200 apartments in Five Dock.
The apartments will be spread across six towers which will sit above a six to eight-level podium that will comprise commercial and retail spaces, including a full-line supermarket and an indoor recreation facility.
A competitive design process has already been held for the project. It invited four architectural firms to prepare a mixed-use development proposal, which was considered by a Jury of five members who unanimously decided that the Turner scheme had the best potential to achieve design excellence.
Read more: Deicorp lodge State Significant Development application for 1,200 apartments in Five Dock
There was a significant move just north of the bridge where joint venture partners Cbus Property and Galileo Group scaled up their plans for their prime 3,950 sqm Walker St site in North Sydney.
They've gone back to the drawing board and brought in Rothelowman to rejig the plans, add more levels, and reconfigure the apartment mix. They are now proposing 258 apartments.
Read more: First look exclusive: Cbus and Galileo revise plans for new North Sydney apartment development
Sydney’s affluent Eastern Suburbs is also set for an injection of supply.
Ali Mohammed's Positive Investment Enterprise has filed plans for its rare three-lot amalgamation at 80-84 Drumalbyn Road, Bellevue Hill.
They're planning 26 two, three and four-bedroom apartments across a six-level building.
The building, which will cost nearly $34 million to construct, has been designed by MHNDUnion who says the apartment mix is consistent with market demand and would suit the demographic mix of couples, small families, retirees and downsizers living within the surrounding area.
Read more: First look: Positive Investment Enterprise reveal Bellevue Hill apartment plans
Nearby in Woollahra, burgeoning developer Toohey Miller is continuing its expansion into Sydney's most expensive property markets, with plans for a new $29 million development designed by Smart Design Studio at 3 Fullerton Street, just behind Matt Moran's The Chiswick and a short walk from Woollahra's amenity on Ocean and Queen Streets.
The new development will be part five, part six level and home 15 apartments, the majority three-bedders.
Since announcing themselves on the development scene in 2022, Toohey Miller has been busy acquiring sites across some of Sydney's best suburbs.
They've the majority of apartments in their luxury Elizabeth Bay apartment development, No.1 Onslow Place. They're a joint venture partner on Muse Potts Point nearby, while they're putting the finishing touches to their approved Darlinghurst apartment development, Henri House.
Read more: First look: Toohey Miller reveal new Woollahra apartment plans
Read more: City Beat July 2024: Sydney units continue to outperform houses
