Real Estate

Western Sydney is being transformed into a mecca for high rise units

Written by The ReReport

The Western Sydney home with a backyard has been booted to the history books as high-rise apartment blocks dominate city centres more than 15km from the city’s CBD.

With nearly 35,000 units slatted for construction, Western Sydney projects accounted for just under half of Sydney’s entire pipeline of new apartments, CoreLogic-Cordell data showed.

MORE: Politicians blaming migrants for problems: poll

Australia’s cheapest ‘home’ is a cave

Sydney ‘flooded’ with home sales

The west’s backlog of projects also exceeded the supply of units due to be built within a 5km radius of the Sydney CBD, which accounted for 13.6 per cent of Harbour City apartment projects.

CoreLogic head of research Tim Lawless said Sydney’s geographic spread of apartment projects was unique among capital cities.

“The far majority of units are being built near the CBD in other capitals,” he said.

Pockets of the west were likely oversupplied with housing, Mr Lawless added.

Western regions set for the biggest increase in unit supply included Blacktown-North, which was set for a 144 per cent spike in projects over the coming 24 months.

The projects would add 4540 new units to an area that only had 168 existing apartments on the night of the 2016 census.

Penrith was also due a major uplift in apartment supply, with the 3763 unit projects currently in the works expected to add 34.7 per cent more apartments to the area.

Apartment supply in the Merrylands-Guildford region, along with the area around Auburn, would increase by roughly 20 per cent over the two years.

Many of the units under construction in these traditionally family friendly areas were smaller homes aimed predominantly at the investor market not owner occupiers, Mr Lawless said.

The Ryde council area was also one of the biggest construction hot spots, with more than 4000 new units set to be built.

The scale of the building activity has attracted criticism from government. Premier Gladys Berejiklian this week ordered an urgent review into overdevelopment in the Ryde area.

This followed demands from her Finance Minister Victor Dominello, who has been fighting development in the area for months.

Mr Dominello was on record as saying Ryde residents were concerned development was outpacing infrastructure such as roads and schools.

Rapid building activity has come amid a spike in home sales across Sydney as a whole, with the new units expected to add to a growing glut of unsold homes.

The current supply of existing properties for sale is just shy of 40,000 — the highest number since 2009, SQM Research records showed.

SQM managing director Louis Christopher said the market was “now flooded with stock”.

Source link