City Beat October 2024: Units continue to dominate houses in Sydney
Unit values are having their time in the sun in Sydney, as affordability and higher interest rates put a dampener on the house market.
The monthly update from property data analytics firm CoreLogic shows unit values increased by 0.6 per cent across September, whereas the counterpart house market saw a modest 0.1 per cent gain.
The Sydney median unit value is now $860,000, compared to the median value of houses which is now $1,473,000.
The growth in the Sydney market has slowed, with dwelling values, which incorporates houses and units, showing 0.5 per cent gains over the September quarter, the lowest growth since early 2023 when values briefly declined.
What happened in Sydney’s off the plan apartment market in September
There has been strong response to several new off the plan apartment developments in Sydney in September, particularly in the booming Lower North Shore region.
Over 60 per cent of apartments in the first release at TWT Property Group's The Collective, on the fringe of Crows Nest and St Leonards, were snapped up on the opening weekend.
Local downsizers and young couples made up the majority of purchasers who were attracted to the proximity to both Crows Nest Metro and Crows Nest village.
The first building will have 93 one, two, three and four-bedroom apartments. The curved, 16-level building features interiors by DBI who has created an interior scheme that is focused on creating functional living spaces, like the inclusion of study nooks and protected balconies.
The first stage of the masterplan will feature 3,000 sqm of commercial space, part of the 10,000 sqm of commercial space that will be on offer across the total 1.3-hectare development.
It's been the same strong response to Elevate at Hume Place, the new release of apartments literally above Crows Nest Metro from Third.i.
The 130 one, two, three bedroom apartments offer unparalleled access to Sydney, as well as all of the amenity in the booming Lower North Shore metro corridor.
The apartments are split into three categories; The Urban Residences, Panoramic Residences, and Skyhomes, offering a wide choice for buyers.
Hume Place will comprise three mixed-use buildings designed by the internationally acclaimed architecture firm Woods Bagot.
Third.i and joint venture partner Phoenix Property Investors (PPI) acquired the Crows Nest Overstation Development at the end of 2022 after being shortlisted by the NSW Government and Sydney Metro in a rigorous and highly competitive tender process. Third.i and PPI were selected over some of Australia’s most successful developers, to deliver both sites above the station.
Records continued to set in the east with the circa $22 million sales of the AYA Penthouse representing the highest price paid for a non-beachfacing apartment.
The four-bedroom penthouse, designed by Koichi Takada at the top of the nearly complete Aqualine building, is the largest single-level penthouse in Bondi Beach.
There was another record set in The Centennial Collection in the nearby Bondi Junction. An $8.85 million sale is the highest achieved for a three-bed apartment in the suburb.
Ray White Projects Director, Marcello Bo, said local rightsizers continue to show strong interest in the project with "generous layouts and amazing interiors."
“Uninterrupted views of the harbour and city skyline is a big drawcard for buyers, along with the proximity to Woollahra, Bondi Junction and Centennial Park across the road," Bo said.
“The Centennial Collection finishes are extremely luxurious. There’s a winter pool and a year-round rooftop pool, a concierge and wellness hub; it really is a luxury experience.”
Activity from both buyers and developers continued in Castle Hill.
Developer CPDM has secured significant interest following the launch of its low-rise development Larool Crescent.
Its proximity to Castle Towers, and its variety of configurations, has seen it become a hit with first home buyers, rightsizers and downsizers.
The most notable new development plans filed in September across Sydney was also in Castle Hill where Kassis Homes unveiled plans for Grand Reve II, named after its recently completed debut Castle Hill apartment development, Grand Reve.
The new plans are for four towers, three residential and one hotel, next door to Grand Reve across a large 9,074 sqm on Garthowen Crescent and Old Castle Hill Road.
The new development will again offer a range of configurations. Across the 19, 22 and 23-level residential buildings will be 50 one-beds, 147 two-bed apartments, 56 three-beds and 11 four-bed apartments.
"We've been building in the area for three decades, and we're passionate about delivering high-quality residential living to Castle Hill," Sam Kassis told Urban.
Read more: Reve Group file for new four-tower development in Castle Hill
