There is a perception that an apartment in Sydney’s CBD is unaffordable for most people, but what's really going on?
Laing+Simmons CBD/Surry Hills principal, Dean Applegate, said that from one perspective there is merit in this view.
Prices remain strong, he said, and while the rampant growth of recent years may have subsided, vendors and developers are still attracting a lot of interest in properties in and around the CBD.
“But on the other hand, when you consider that Sydney is becoming more and more a global city and Australia’s major economic centre, you could argue that we’ve not even approached the ceiling in terms of potential future growth,” Mr Applegate said.
“At One Hyde Park in London you have apartments costing up to approximately £140 million which, even with the low value of the UK pound, equates to $232 million.”
He also said, being careful not to draw direct comparisons, that if Sydney is truly a global city then its CBD apartment market still has a long way to go.
“Within the last 10 years we have seen major retailers enter the Australian market like H&M and Topshop, world class entertaining and dining establishments such as Mr Wong and The Ivy, and new city neighbourhoods emerging such as Barangaroo and Darling Square.
“The proposed Google headquarters, fish market redevelopment, White Bay, Goldfields House and several other high profile developments are continually upping the quality.”
The emergence of these factors, Mr Applegate said, is likely to play a major role in shaping the future of the CBD residential market.
