Inner city set for massive boost to apartment stock
One area of inner Sydney will be home to almost half the new apartment stock projected to hit the market in the next three years, according to a new report.
The South Dowling precinct will supply 49 per cent of the new apartments to hit the inner-Sydney market between 2014-15 and 2017-18, according to BIS Shrapnel.
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New apartment supply in inner Sydney has reached a 15-year high, with an annual total of 3,350 apartments in 2014-15 as demand for off-the-plan apartments has risen.
Following the 49 per cent of new dwellings being located in South Dowling, North Sydney, will account for a further 23 per cent.
City South precinct will be host to 10 per cent of new dwellings, the City Centre precinct 6 per cent and the Surry Hills precinct 5 per cent.
East Sydney, Circular Quay and Pyrmont will host 3 per cent, 2 per cent and 1 per cent respectively.
According to the BIS Shrapnel report, 55 per cent of all apartments in the inner city are rental apartments, as opposed to 28 per cent across greater Sydney.
This highlights the preference of investors for low-maintenance dwellings close to good transport links and major commercial, retail and entertainment centres where tenant demand is likely to be greatest, the report said.
New supply in inner Sydney is on track to remain strong and average just over 3,000 apartment completions per annum over the three years to 2017-18, with 74 per cent of these apartments already under construction as of June 2015.
