Australia’s cultural centre and most densely populated city, Sydney is home to the iconic Opera House and Harbour Bridge. Its’ warm, sunny climate and high standard of living make it a popular choice for those moving to Australia as well as those visiting on business or holiday.
Following many years of stellar growth in Sydney’s residential prices, the market is now cooling. Unit price growth was just 0.9% in the 12 months to June 2018, compared with an average of 7.2% year on year over the last decade. This slowdown is expected to continue, with moderate price falls forecast over the next year or so. Detached dwelling prices are also declining.
The trend has been largely driven by a number of macro prudential policies aimed at cooling the housing market. They include tighter credit policies such as curtailing the availability of interest only loans, and increased stamp duty levels from 4% to 8% for overseas buyers, which came into effect in 2017. An increased level of new housing (units and detached dwellings) is also feeding through to the negative price pressures. Sydney had over 62,000 residential completions in the 2018 financial year, which was up 49% on the 10-year average. A significant number of key transport infrastructure projects are underway in Sydney, however, that will positively impact long-term residential demand and pricing in the locations they connect.
Projects augmenting the road network include WestConnex, which will enable motorists to drive in a loop from Parramatta and Sydney University to Kingsford Smith Airport; and NorthConnex, which will connect the M1 Pacific Motorway and M2 Hills Motorway and will complete the Sydney Orbital Network and its links to the National Highway.
Plans are also underway to improve Sydney’s metro and light railway networks as well as its bus services. B-Line, between the northern beaches and the city, is a series of road widening works designed to improve the reliability of buses.
What you can buy in Sydney: Embassy Tower
Situated in St Leonards, around 5km north of the Sydney CBD, the 29-storey Embassy Tower is the tallest building on Sydney’s North Shore. The building offers panoramic views over Sydney Harbour and the city skyline, and the floor to ceiling glass windows maximise the view.
|Address: 1 Marshall Avenue, St Leonards|
|Status: Newly completed in late 2018|
|Number of units: 215|
|Average price: $1,250psf (USD)|
A vibrant new civic plaza will provide Embassy Tower with a link to direct access to the St Leonards train station and the Bus Interchange. Surrounding the plaza, 30,000 sqm of retail and commercial space is currently being developed, including a new supermarket, fine dining eateries, specialty retailers and a public library. The development is also a few minutes’ walk from the new Crows Nest metro station set to open in 2024, which forms part of the brand new Sydney Metro rail system.
The tower comprises a range of studios, 1, 2 and 3-bedroom apartments and is already 90% sold out.