Market analysis - Sydney Units

Discussion in 'Development' started by Scott No Mates, 4th Jan, 2021.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Recent article from the SMH - https://www.smh.com.au/national/nsw...shaping-the-harbour-city-20201209-p56lxy.html (hopefully unlocked)

    There are a few insights as to who is occupying units, where there are shortfalls & the types which are in high demand eg there are few 3 bedders (for family groups) whereas there's a glut of 2 bedders (for investors) as developers make more out of 2 bedders (incremental development profits on a 3 bedder are negligible).

    Interestingly the tenants union see's it their way (of course)...

    "What we are not good at in Australia is finding out what the tenants want," he said.

    "We don't tend to ask people what they want from their housing, and that is the real challenge. What we don't have at the bottom of the market is genuine competition. Landlords aren't having to compete with each other. It's the tenants having to compete for housing."

    • Where are the developers who are listening to the market?
    • Or are we prepared to suffer with sub-standard sized for future growth?
    • If there is a shortage, is it not better to increase supply for a segment of the market which will continue to grow?
    • Should we be looking at the data of who is going into units, why and whether this is going to be a permanent trend (most likely due to lack of land, lifestyle, affordability, location, facilities etc)?
     
  2. Piston_Broke

    Piston_Broke Well-Known Member

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    I thik there's a case for smaller building with bigger appartments in prime locations.
    4 bed + 2LG. 4 to 8 units max.
    I've seen a few and it may be catching on.
     
  3. Tattler

    Tattler Well-Known Member

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    The problem with 3+ bedder apartments is that their prices would be closer to townhouse/villas prices. If that is the case, why not build more townhouses/villas/terraces instead?
     
  4. Piston_Broke

    Piston_Broke Well-Known Member

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    Low maintenance, Security, Share facilites.
     

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