The Inner Sydney market has been on a development high for the past few years, with an influx of new residential apartment buildings completed bringing more residents into the city.
Development site sales have been at a long term high and new highs in values are being achieved fuelled by local and foreign developers to capitalise on the historic long term undersupply situation of Sydney. Looking ahead with 160 new projects at various stages within the development pipeline there is expected to be 25,000 apartments added to the Sydney LGA market over the next 10 years. Considering the average household size of 1.9, this could result in a population increase of at least 47,500 in the shorter term.
Looking further ahead to longer population expectations, projections suggest that this market may grow as much as 58.3% to 290,550 by 2031. This huge growth in population will emphasise the requirement for greater infrastructure including retailing. The move to more convenience based centres has been apparent across Sydney with a growth in small format supermarkets. The reduction in parking spaces in these new developments and move to greater public transport usage through the cities investment in light rail etc will result in an expectation by residents to be able to walk to shop. This will most likely result in a need for more supermarkets to cater to a smaller population clusters further showing the attractiveness of these smaller format centres.