Pyrmont an apartment hotspot with 120% rise in prices
A new research report has highlighted the rise in apartment prices in Pyrmont over the last decade, which will be compounded in the future with new infrastructure development planned.
The Spotlight on Residential Property in Pyrmont research report by Savills Australia shows the rate of development in the area has slowed down over the last 10 years, while residential stock has risen by 9.1 per cent.
However, that is predicted to change with redevelopments to various facets of Pyrmont, including the Sydney Fish Market.
“The transformation of the Bays Precinct is anticipated to improve the quality of life for existing residents and attract new buyers to the area with eight new waterfront destinations, as well as the six million visitors per year that are forecast to visit the relocated Sydney Fish Market,” said Sophie Chick, head of residential research at Savills Australia.
Currently, median apartment prices are at $1.05 million and median house prices are at $1.57 million, with median values rising by 7.5 per cent and 7.1 per cent over the last year to June 2017 for apartments and houses respectively, in addition to having a vacancy rate of 1.2 per cent, as opposed to Greater Sydney’s 2.2 per cent, due to high levels of demand and a lack of new supply.
These prices are trending higher than nearby suburbs Sydney, Glebe and Ultimo, yet still lower than those in Rozelle and Balmain for apartments, while house prices are lower than all of the aforementioned suburbs except for Ultimo.
Median weekly rental values for June 2017 were at $840 for houses and $810 for apartments, providing average yields of 2.8 per cent and 4 per cent respectively.
The report goes on to say that an issue facing Pyrmont, along with the whole of Sydney, is affordability, which will slow price growth limit demand from first home buyers and homemovers. This does not mean investors will be unrestrained as the number of loans to investors from banks is said to reduce, and demand from investors will also be curbed due to additional stamp duty fees.
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