City Beat January 2025: Sydney property market cooldown slows as new apartment pipeline ramps up
The softening of Sydney's housing market looks to be short-lived, with hopes of an interest rate cut or two in the near term fuelling a slowdown of the slowdown.
October marked the first time in 21 months that the Sydney housing market went backwards. Sydney's last decline saw the market contract -12.4 per cent between February 2022 and January 2023.
That doesn't look on the cards this time however, with some positive signs coming at the start of 2025.
In January, house values declined -0.4 per cent and units -0.2 per cent, according to CoreLogic's Home Value Index, better than they both fared in December.
If next month prints even better, it will look like both the house and unit market might give up just two or three per cent of the gains they saw for 21 months until October 2024.
What happened in Sydney’s off the plan apartment market in January?
The property market is generally quite quiet in Sydney until after Australia Day when kids return to school and prospective buyers restart their search after the summer break.
There was nothing quiet about the development applications pushed to various councils across Sydney's inner city in January however - with several developers getting back to the desks early and putting their proposals on the desks of local councils.
The biggest plans were revealed in the CBD where Billbergia Group and Metrics Credit Partners are teaming up for two 80-level towers that will home around 600 apartments, a high-end hotel, retail spaces, and an upgraded public domain.
The duo acquired a 6,000 sqm site spanning Castlereagh, Pitt, and Liverpool Streets and intends on starting demolition on the site, subject to approvals, next year.
Read more: Billbergia & Metrics propose two 80-level towers in Sydney's CBD
In harbourside Double Bay, furniture king Anthony Scali is plotting a redevelopment of the Savoy Hotel on Knox Street.
Scali has submitted plans for a five-level, mixed-use building at 35-45 Knox Street, comprising nine luxury apartments above three ground-floor retail spaces.
Designed by MHN Design Union, the $31 million development aims to integrate with the suburb’s established character while catering to a diverse demographic, including families, downsizers, and retirees.
The proposal is part of a broader wave of redevelopment in Double Bay, which includes the $1 billion transformation of the InterContinental Double Bay precinct and other shop-top housing projects in the area.
Read more: Double Bay makeover to continue as Scali furniture boss plots new luxe apartments
Mixed-use projects proved popular in January. Fabcot, the development arm of supermarket giant Woolworths, finally submitted its long-awaited plans for its Waterloo shoptop development.
The $165 million project designed by Bates Smart will include two residential buildings with 110 apartments, a five-level commercial building, and a full-line Woolworths supermarket with specialty retail.
Read more: Woolworths unveils long-awaited Waterloo precinct with shop-top housing
Waterloo is undergoing a major transformation. Adjacent to the site is DASCO's six-building Danks Street District which was recently launched to the market.
And the growth in Waterloo is set to continue with joint venture partners Mirvac and John Holland changing up their plans for Waterloo Metro Quarter, scrapping offices in favour of co-living and apartment towers.
The $960 million submission will deliver 655 apartments in total, as well as retail spaces and community facilities above the recently opened metro station.
The original Concept SSDA, approved in 2019, envisioned a mixed-use development but was later amended in 2021 to primarily focus on office space.
However, the developers cite significant shifts in market demand following the COVID-19 pandemic, including a decline in demand for city fringe office space and an escalating need for residential housing in the Waterloo-Zetland area.
Read more: First Look: Mirvac, John Holland, submit $960m Waterloo Metro Quarter plans
