The Sydney market is experiencing a phenomenon called ghost tower syndrome— characterised by a record number of empty apartments, an increasing shortage of buyers and tenants, as well as record new supply.
Data show that a total of 9,446 apartments are listed for sale in NSW’s capital—and over 20% – or almost 2,000 of them – are new.
In addition, there is also a glut of rental units without a tenant, according to My Housing Market Chief Economist Andrew Wilson.
Parramatta, Liverpool, Ryde, Chatswood, and Bankstown, alongside the city, have to face the pressing issue.
A total of 16,201 units are still available for occupancy in Sydney – up more than 50% over the previous year. The figure is a reflection of the increasing unit vacancy rates – up from 2.1% to 3.3% over the same period.
Nine.com.au reported that developers had not offered a fire sale, given that they have a buffer of profits from thriving years. Big discounts, though, are likely to come.
It will take time to absorb unit listings, according to Wilson. There is currently a drop in new tenants due to a spike in first-home buyers, a significant decline in migration, and more new stock coming into the market. Hence, a lot of new apartment buildings could potentially remain ghost towers, he said.
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local mortgage broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously - you can check out