A new report by realestate.com.au gives us a snapshot of the most popular locations among buyers of new apartments. Realestate.com.au compiled the state-based lists according to the suburbs that received the highest number of views for new developments in their Buy and New Homes sections.
There’s certainly been a boom in new apartment/off-the-plan sales in Sydney over the past two years. Major new developments including the first stage of Barangaroo and other large scale complexes in the city and inner city have sold out very quickly and we are also seeing strong buyer take-up of smaller boutique developments being built in established suburbs.
According to the Housing Industry Association, apartment developments are the key driver of an overall uplift in construction nationwide, with NSW, VIC and QLD all recording a strong number of building approvals. Latest figures from the ABS show multi-unit approvals jumped by 17.5% in January 2015 to a level that is 24.3% higher than the same time last year. That’s a lot of new bricks and mortar.
So why are we seeing so many new apartments going up; and who’s buying them?
The why
- Strong market conditions have brought developers back into the game. More overseas developers, particularly from China, are also looking for opportunities in Australia
- Council re-zoning in established suburban markets is allowing new medium density housing
- There is rising demand for apartment living, not only for affordability but also lifestyle
- There is strong demand from local and overseas investors
The who
- Overseas investors can only buy new properties and local investors love the attractive rental returns and depreciation tax benefits
- Executive singles and couples. Phenomenal new city and inner city developments are providing more opportunity for executives to live the ultimate luxury city lifestyle by the harbour and within walking distance of the office
- A significant number of downsizers are favouring city living over the traditional seachange, preferring to be amongst lots of entertainment and lifestyle amenities
- Gen Y. Young people have a preference for living ‘close to the action’ and government incentives to buy new are helping them purchase new apartments close to universities and the CBD
Here’s a state-by-state rundown of where new apartment buyers want to live or invest in most. (source: realestate.com.au)
New South Wales
Victoria
- Collingwood
- Hampton
- Melbourne CBD
- Carlton
- Richmond
- Brunswick East
- Kensington
- Ringwood
- Newport
- Williamstown
Queensland
- Brisbane CBD
- Wooloowin
- Noosa Heads
- Kangaroo Point
- Broadbeach
- Everton Park
- Hamilton
- Highgate Hill
- South Brisbane
- West End
Western Australia
- Swanbourne
- Northbridge
- Maylands
- South Perth
- Scarborough
- Innaloo
- Subiaco
- Mosman Park
- West Leederville
- Perth
South Australia
If you’re considering buying a new apartment, make sure you ask all the pertinent questions including the estimated cost of strata levies. Look at some buildings the developer has done previously and contact the strata managers to find out if any structural issues have arisen over time.
If you’re a first home buyer, make sure you find out what incentives are available in your state to assist with your purchase – most governments have been very generous in this regard.