The market for luxury apartments and condos is growing rapidly, with more than 7,000 properties in Sydney listed and nearly 4,000 condos and villas under construction.
It is a significant sector for the city’s real estate industry, with Sydney’s population expected to reach more than 15 million by 2023, and a total of $5.6 billion of construction and renovation work needed over the next decade, according to a report from research firm CBRE.
The report, published in September, said more than $1.5 billion worth of construction work was expected in the coming year, and more than 40 per cent of all projects were for condominium projects.
Mr Raine said the industry had already reached the point where it was a huge market for developers.
“We’re at the point now where it’s the largest market in Australia for luxury and multi-million dollar luxury residential construction projects, but it’s not even a single project,” he said.
Mr O’Keefe said the housing boom had helped Sydney become the country’s biggest market for rental accommodation.
“It’s certainly a significant growth sector, and there’s a lot of money to be made,” he told the ABC.
The number of luxury apartments in the city increased by 4 per cent to almost 15,000 units in September.
In the past three months, there have been 3,946 luxury apartment and condo projects under construction in Sydney.
Mr Tamburello said it was not a surprise that more people were choosing to rent in the market.
“What’s really surprising is how much more people are doing it now than ever before,” he says.
“The market is so much more robust than it was in the last five years, there’s no question.”
“I think a lot more people want to be in a luxury apartment in Sydney now than at any other time in the past 10 years,” Mr Oleg said.
“That’s a pretty big shift, because we used to see this one or two per cent in the apartment market.
Now it’s up to almost 40 per a project.”