Buyer demand for off-the-plan Sydney apartments has rebounded to its highest level in four years as surging house prices shift attention back to the more affordable unit market.
Off-the-plan sales tracked by Urbis show that 15% of apartments available for purchase exchanged over the quarter - the highest sales rate in Sydney since 2017. This is almost double the 8% figure recorded in the second quarter and nearly four times higher than the 4% sales rate recorded at the start of the year.
Mark Dawson, Director of Urbis, commented to AFR, “Sydney is showing signs of post-lockdown recovery. House prices are putting pressure on affordability, and [together with] tighter lending restrictions, apartments will be an attractive option for many in the market.
By contrast, the more affordable Melbourne apartment market, which has historically been more reliant on off-the-plan sales to overseas investors and students, weakened further over the September quarter. Mr Dawson said Melbourne’s harder lockdown, which contrasted with greater freedoms in Sydney, also contributed to the weaker conditions.
Despite the comparatively weaker performance, the Melbourne market is expected to significantly improve as the city emerges from its restrictions. Mr Dawson also expects the Melbourne market to further strengthen with the reopening of borders and return of international students.
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