NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Adam Bodon What were the key market trends occurring throughout 2021 in your region?
Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? Late 2020 and for the majority of 2021 there was a high volume of transactions on small to medium sized development sites, say 10-30 units by mostly private builder developers. Moving into 2022, a large majority of that enquiry has softened with the larger tier 3 and tier 2 builders and developers more active, with typically larger sites greater than 50 units trading. What types of sites are most in-demand given the current strong residential housing market? It’s very clear that there are two clear types of sites that are most sought after: 1. Blue chip suburbs and locations, boutique blocks targeting downsizers 2. For middle ring suburbs with immediate access to amenity, large scale greater than 100 units which can be financed as a build to rent project
There was a significant shift to quality development sites that offered a unique point of difference that would target owner occupiers. Naturally with the heated market conditions, there was almost double the enquiry for DA approved sites vs Raw in 2021 . What have been the fundamental drivers of demand amongst buyers in the last twelve months? We’ve seen a very clear trend in motivations of buyers. For those who are looking at build to sell models, a clear focus on quality locations with limited supply and a genuine point of difference that they can offer to the end buyers who have been and still are owner occupiers. The strongest demand has typically been in suburbs with a higher GR Rate as these suburbs can typically give developers flexibility to adjust pricing to accommodate the sharp rise in costs and still be able to move stock.
ADAM BODON Managing Director Adam Charles Real Estate
20 –April / May 2022
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