Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Sunday, 24 May 2015

The United Colors of Meriton

Approvals record highs

Troublingly, the supply of available shovel-ready land for residential usage in Greater Sydney has plummeted to almost zero,

Consequently, the detached house building upturn is set to peak at miserably low levels for a capital city the size of Sydney.

On the other hand, with financing costs falling to record lows and dwelling prices rising, a good deal of formerly industrial land which has been rezoned for apartment construction is now seeing multi-unit buildings sprouting up all over the show, like urban wastelands sprinkled with "Grow More".

This property cycle is unique in Australian history - for the first time it is being totally dominated by multi-level unit construction, and not only in Sydney.

Unarrested development

In short there is a huge amount of construction underway in Sydney at the present time. OK, so I can post charts until I'm blue in the face (sometimes I do, it's not pleasant), but what does this apartment boom actually look like?

I took the ol' camera out and about over the weekend and captured a few images, just for you, lucky blog readers.

It had been projected that there would be in the region of 25,000 new inner city units constructed in Sydney through the five years to 2018 with the inner south region leading the way.

Zetland, Green Square, Mascot, Chippendale, Waterloo and Rosebery are all set to feature prominently. Indeed, they are already (I previously took a squiz around Mascot Square here).

Let's look at a some more of the hubbub. 

"Zeta" at Rosebery by Meriton is now well underway...

Rosebery is another major hotspot for new apartments.

And how! 

I worked as a courier around this area way back in the 1990s in my backpacking years (longer ago than I care to mention) - back then, the notion that the region could be a major player in the residential space was utterly inconceivable!

Yet, lookie here...

And how's about this little nugget from Meriton? A glimpse into the future of Sydney...

And below, Zetland.

Not exactly the most "pumping" of locations, it must be said, but in reality these newer suburbs rarely are until they are more established with entertainment precincts. 

Perhaps everyone was just at the Supa Centa, I can't say for sure!

And Moore Park, looking suspiciously like the "Ordos of New South Wales".

Maybe it's busier during the week, to be fair. Cough.

I think that'll do for today.

Lend Lease (LLC) and Mirvac (MGR) are also merrily in on the act, with this unprecedanted apartment construction cycle expected to be wrapped up in full by 2018. 

Suffice to say there is lots and lots of this going on. 

There is also a fair amount of commercial construction and renovation taking place across inner Sydney, perhaps to be the subject of another blog post soon.

Hey, ka-boom!