Prices for residential apartments in Sydney’s CBD are soaring north, according to new research.
New data from Colliers International found the median price for an apartment in the heart of Sydney increased by 34 per cent in the fourth quarter last year.
The rise is in contrast to greater Sydney's local government area where the median price declined 2.9 per cent in the same period.
The inaugural Colliers International Sydney Apartment Research & Forecast Report took into account 178 new and established apartment sales in the northern, mid, eastern and southern CBD precincts, with the east recording the highest number of sales with 84, closely followed by the south, with 74 sales recorded.
The median price of an apartment in the ‘east’ precinct rose from $485,000 in the third quarter of 2010 to $650,000 in the fourth quarter.
Similarly mid CBD, bounded by Market and Bathurst Streets and the western edge of Hyde Park, rose from $472,000 to $582,500 over the same period.
Peter Chittenden, Colliers International managing director of residential, said metropolitan Sydney’s property fundamentals remain sound as demand continues to outpace supply.
“New supply levels have been impacted over the last few years due to the global financial crisis, and the subsequent issues surrounding development funding,” he said.
“The decline in supply levels has resulted in pent-up demand and only recently developers have sought to gain approval as market conditions are favourable.”