NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Peter Mosedale Reflecting on 2022, what were some of the prevailing trends that you noticed and how did they play out in the market? In 2022 there was a distinct shift into owner occupier stock outperforming investment What market sectors do you anticipate being most in demand over the next six months?
Destination locations are always in flavor, anything special like a view or the proximity to beach will attract a downsizer buyer. But we are seeing a great push in downsizers not wanting to spend over $3m. They are still looking for quality, but can’t afford the beachfront prices. This is why Hamptons by Rose in Dee Why has performed so well, it fills a gap in the market by offering a top quality fit out within lower price ranges. We are also seeing a push towards more shop- top housing for the buyer wanting proximity to everything, this attracts both sides of the market being the executive worker to the downsizer planning for the future. Build to rent is also showing up more and more these days with the market trying to meet the huge undersupply in the rental market. We are dealing with everything from affordable housing models to high net worth build to rent models such as our stunning new building in Collaroy, Phoenix. Do you feel that associated factors like building costs, supply-chain challenges and market sentiment will improve for developers over the next 6-12 months? For instance, have building costs already peaked? There is already discussion in the market that the pipeline for builder’s work will be
stock, with the design of apartments focusing on livability, the new work from home lifestyle and an uplift in space. The downsizer continued to be one of the strongest buyer demographics, with the aspirational upsizer who could not afford a house also looking at livable apartments as a long-term home. Market-wise, what are you forecasting in the first half of 2023 and how will increased lending costs impact the various markets? Here at Upstate Projects are forecasting to see the investors return to the market as the uncertainty is evading and rental prices continue to drive higher. From the coalface, we are seeing energy return to the market with significantly more enquiry in Q1 2023 versus Q4 2022. The cost of lending has reduced peoples borrowing capacity and in turn, locked them out of free standing or semi-detached housing. This means for some buyers apartment living has become their only option.
PETER MOSEDALE Director Upstate Projects
22 –February / March 2023
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