With development site activity “white hot” across Sydney, consideration of affordability and viability start to raise concern. A weight of money both domestically and internationally for quality residential development assets has quickly driven sales of development sites more than 120% on a per site basis over the year or two, now averaging $180,000 per unit site for the inner and middle rings, within a broad range up to $300,000 or even $1 million for super prime locations. Big, small, infill, alternate use, raw or with DA’s, no property has been off limits for developers capitalising on this glut of buyers looking to invest in Sydney. Median apartment prices have similarly moved north with the March quarter Sydney total apartment price $541,000 however preliminary numbers for June look like it may start to level out. Yet the spread between old stock and new is vast, with the average new 2 bedroom apartment in the Sydney metropolitan area achieving upwards of $750,000. Despite these increases in end product, the gap between the site price per apartment basis versus the end sale price is closing.
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