If you needed more signs that we’re going into a property ‘bull’ market, here’s another. Australia’s wealthiest property developer Harry Triguboff just purchased a $68.5M site in Sydney’s outer suburbs. Notably not an inner-city location – the market isn’t quite ready for that yet. The CBD’s apartment market has been significantly impacted throughout Covid by limited international travel, overseas students and flight to larger homes. This has been a great live example of how weakest sub-markets get annihilated during downturns. You may know the old dictum, when the tide goes out, you see who has been swimming naked.
If developers believe investors are ready to start purchasing new apartments off the plan once more, you can be sure that the market upswing is well and truly underway. Confidence in high density dwellings is positive for the economy as development brings a multiplier effect for jobs. Conversely, high density apartments are one of the worst investments for many reasons discussed in Ep#46 & 47 of The Property Planner, Buyer and Professor podcast. It’s yet to be seen if the pandemic will trigger developers building larger dwellings, with the new working from home dictum. Let’s hope so! It makes for more sustainable living and communities.
Read the article in the Fin Review