Apartment Supply Predicted to Rise Rapidly in Sydney

The market for real estate in Sydney is set to see a significant rise in apartments over the next five years, according to new research from property consultancy firm Deep End Services.

Research findings showed that this heightened activity in the apartment market will be due to the high number of developments currently in the pipeline.

This is great news for investors looking to secure an investment property, or even buyers seeking a way into the Sydney market.

According to the research, there are 25,000 apartments through 130 various projects all around the Sydney area. These stem from Willoughby, Botany Bay, Marrickville and Waverly right through the heart of Sydney's centre.

The bulk of these developments are expected to be built during 2014, which may indicate a great time to look for apartments to use as rental properties or dwellings.

Over 4,000 of these apartments will be located in Sydney CBD, with other high-concentrated areas to include Zetland, Mascot and Chippendale.

Once these projects are completed, housing supply in the city of Sydney will finally be heading towards a more desirable level.

This is a positive direction for the Sydney region, as the number of housing starts and approvals over the last few years has been relatively low. As a result of this, there has been a considerable supply and demand issue between those looking for houses for sale and the availability of housing stock.

Housing approval numbers in New South Wales have begun to pick up recently, with data from the Australian Bureau of Statistics showing that the level reached its highest in eight years in July 2013.

At the same time, the introduction of these new apartments over the next few years may lead to an improved level of housing affordability.

Sydney is known to be one of the most expensive real estate markets in the country, which is often hard for lower income earners to buy into.

The state government has shown its support for the introduction of apartments into the Sydney property market. In August, the Department of Planning and Infrastructure proposed a number of planning reforms to support the construction of smaller housing.

These new reforms are expected to help introduce more units, apartments and townhouses into key areas of the Sydney region.

In turn, this is expected to provide more affordable housing options for Sydney buyers.