City Beat November 2024: Sydney unit values rise while house values decline as market softens
Unit values in Sydney have remained resilient, while the house segment of the market continues to show signs of weakness.
CoreLogic's Monthly Index revealed that unit values rose by 0.2 per cent in November and 0.4 per cent over the past three months, while house values contracted by -0.4 per cent in November and are down -0.8 per cent over the past quarter.
Sydney’s median unit value is now $865,000, reflecting a 2.5 per cent increase since the start of the year.
Houses are facing greater challenges, driven by tighter lending conditions resulting from the Reserve Bank's decision to maintain interest rates, alongside ongoing affordability issues in a market that has shown considerable strength in recent years.
The volume of available listings has contributed to the market's rebalancing, with Sydney’s listings now 10.4 per cent above the five-year average—the highest for this time of year since 2018.
What happened in Sydney’s off the plan apartment market in November?
Enquiry levels in November were the highest they’ve been since April, with demand increasing across all regions from Castle Hill to Newcastle and everywhere in between.
The upswing in enquiry was largely driven by the downsizer/rightsizer market, which has been less affected by high interest rates compared to other market segments.
The Eastern Suburbs, in particular, saw a significant rise in demand from both downsizers/rightsizers and investors, spurred by two prominent projects from one of Sydney’s leading builder-developers.
TOGA recently completed Surry Hills Village, a redevelopment of the former "murder mall" on the border of Surry Hills and Redfern.
It only took a few weeks for them to sell the final penthouse, which achieved a near-suburb record price after expressions of interest were sought at around $7.5 million.
SJB Director Adam Haddow drew inspiration from his award-winning Redfern residence when designing the three-bedroom penthouses at Surry Hills Village.
A limited number of apartments remain for sale in the landmark mixed-use development, which also includes hospitality venues and retail spaces in Wunderlich Lane.
TOGA’s The Kensington, a different yet equally appealing development on Anzac Parade, has been attracting interest from all buyer types in recent months.
Located directly outside a light rail stop and within walking distance of the Prince of Wales Hospital, the University of New South Wales, and Centennial Park, The Kensington has proven especially attractive to both first home buyers and investors.
The development features 142 one, two and three-bedroom apartments currently under construction by 4.5-Star iCIRT rated builder DASCO, and will sit above seven retail spaces—an element TOGA consistently incorporates into its projects.
TOGA has also just broken ground on Macquarie Rise, its fourth development in Macquarie Park. This project will feature three residential towers with a total of 268 apartments. Over 100 units have already been sold.
The $400 million development, designed by Turner Studio, will offer flexible living spaces and lifestyle amenities, including a 20-metre lap pool, a Pilates studio, and a cinema room.
November also saw the unveiling of the Sydney Olympic Park Master Plan 2050, which aims to transform the precinct into a vibrant urban community.
The plan proposes the construction of up to 13,000 new homes, including affordable housing, as well as cultural, recreational, and green spaces.
Key precincts, such as the Urban Centre, are set to integrate residential, commercial, and cultural facilities, while environmental conservation efforts also aim to enhance urban greening and sustainability.
As far as looking ahead goes, Charter Hall unveiled plans for a near-$1 billion mixed-use tower at 201-217 Elizabeth Street in the CBD.
The 55-level skyscraper will feature a combination of hotel accommodations and 264 apartments, ranging from one to four bedrooms, alongside retail and hospitality spaces.
Designed by fjc studio, the tower aims for exemplary sustainability benchmarks and offers sweeping views of Hyde Park and Sydney Harbour.
Staying in the CBD, Signapore-listed First Sponsor Group and joint venture partner ICD Property revealed the first look of their redevelopment of the 130-year-old, state heritage-listed City Tattersall Club building on Pitt Street.
The 241 premium apartments will hit the market in 2025 with CBRE.
BVN Architecture won the design competition to create the new development, dubbed Sydney House, handling both the tower and the interiors. FJC Studio led the design of the heritage podium.
Given the short supply of new apartments in Sydney, projects in the city tend to outperform the majority of other markets.
Mirvac smashed records for its first release of its luxury Harbourside Residences in Darling Harbour. Their $600 million worth of pre-sales was the highest they've achieved in their 50+ year history.
Over 140 apartments have been conditionally sold to local buyers with sold prices ranging from just over $1.7 million to $25 million.
The sales launch for the 48-level luxury residential tower, a redevelopment of the former Harbourside shopping centre, saw a strong response from a diverse range of buyers including downsizers, families and couples from the local market, including the inner west, northwest, eastern suburbs, and north shore of Sydney. There were also some interstate buyers.
New projects on the Sydney Metro line continue to do well.
Elevate Hume Place, the apartments above the Crows Nest Station being developed by Third.i and Phoenix Property Investors saw a successful launch.
Designed by Woods Bagot, Elevate Hume Place comprises 130 one, two, and three-bedroom apartments.
Third.i Co-Founder Luke Berry said the unprecedented demand and strong interest not only reflects the quality of the apartments, but also the increasing demand for convenient, transit-oriented living in Sydney's dynamic real estate market.
“We are thrilled with the strong sales results at launch for Elevate Hume Place, this achievement highlights the growing appetite for contemporary living that prioritises accessibility and connectivity,” Berry said.
“The design, amenities, demographic, and prime location of Elevate Hume Place have attracted a diverse range of local and international buyers, from young professionals and first home buyers to investors and downsizers, all seeking the perfect blend of urban convenience and community charm.”
Castle Hill has also ramped up another notch since the metro opened.
Developer Ellipse Property has the largest development in the area, just across the road from the newly opened Hills Showground Precinct station.
Ellipse recently put shovel to ground on Atrium, the first stage of Carrington Place which is over 50 per cent sold.
Decode, another iCIRT rated builder, is constructing Atrium, part of the wider $750 million masterplan that borders the Cattai Creek. Carrington Place will comprise five stages that, when complete in 2032, will have over 800 homes. Atrium is set to complete in late 2025.
Outside of the Sydney Metro area, GWH, Newcastle's only builder-developer, launched its latest development.
ERA by Newcastle, two towers designed by FK Australia, will comprise 281 apartments and over 2,000 sqm of resident amenities, aiming to cater to a wide range of buyers, including downsizers and first-home buyers.
ERA is expected to cater to different buyer groups, from first home buyers and investors from Sydney to local downsizers who want a low maintenance, city-centric lifestyle while also being ideally located just a few kilometres from Newcastle’s famous beaches.
