2017 Market Trends - Year of the Downsizers & Investors
2016 was a strong year for the team at CBRE Residential Projects - Australia. We cleared $3 billion plus worth of apartment inventory across Sydney and Melbourne during a period which saw many macro-economic changes in FIRB lending, interest rate changes and even a national election in July.
CBRE Residential Market Outlook for 2017:
- Luxury market under supplied, demand will continue to grow.
- Continuing strong demand for 3 bed apartments from Downsizers and Empty Nesters.
- 2 bedroom apartments will continue to be the most popular choice by buyers: first-home buyers and investors.
- FIRB buyers will continue to purchase in spite of additional charges, however, they will be more particular in their choice of property (ie. flight to quality)
- Affordability continues to drive buyers west – expect strong growth in Merrylands, Granville and Lidcombe.
- Sydney CBD will continue to show strong growth as a higher number of buyers embrace “City Living”, especially on premium sites.
- Trend towards Owner-occupier market – the demand for high quality, large luxury apartments is higher than ever before.
- The State government are pushing to support the local buyer with taxes on international purchasers and no stamp duty relief for investors.
- Blue chip suburb development market still strong i.e. Hawthorn, Camberwell & Kew.
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