Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
1March2015ResearchtorelateapartmentdensitywithsalepriceSYDNEYAPARTMENTSDENSITYANDPRICE 2TheUrbanTaskforceaskedPhDcandidateMichaelManKinLamtoundertakeresearchintotherelaonshipbetweenthedensityofvariousapartmentprecinctsinSydneyandtherecentsalespricesofindividualapartments.MichaelulisedtherecentlyreleasedAustralianBureauofStascsABSsquarekilometregridacrossAustraliatodeterminewhichareasofmetropolitanSydneyhadthegreatestdensies.TheABSmaterialindicatesthatSydneyhasfarmoresquarekilometresofhighdensityhousingthananyotherAustraliancity.THEABSSQUAREKILOMETREDENSITYGRIDInDecember2014theABSlaunchedtheirsquarekilometredensitygridacrossthewholeofAustraliameasuringthehighestdensityasbeingover8000peoplepersquarekilometre.Thenextlevelwasbetween5000and8000peoplepersquarekilometre.Thedensitywascalculatedfromthe2011censuswherethenumberofpeopleperdwellingwasmeasured.Atthehighestlevelover8000Sydneyhad21squarekilometresMelbournehad1andnoothercityinAustraliahadany.SoclearlySydneyisleadingthecountryindensityasapartmentlivingbecomesmorepopular.BycomparisonthecityofLondonhas327squarekilometresoverthe8000densitylevel.APARTMENTSALEPRICEMichaelManKinLamulisedtheRPDatainformaononrecentsalestondsalesoverthelastfewyearswithinvarioussquarekilometregrids.AstheRPDataalsoincludesapartmentsizeMichaelwasabletomeasuretheaveragesalespricepersquaremetreofprojectswithinvariousgrids.ThestreetgridwithineachsquarekilometreenabledMichaeltofocusinonactualaddresseswithinparculargrids.SomegridswereeliminatedastheyhadSydneyHarbourllingmuchofthesquare.RESEARCHRESULTSDEMONSTRATELINKBETWEENDENSITYANDUNITPRICEAcleartrendhasemergedfromthisresearchthatapartmentsinhigherdensityareashavesignicantlyhighersquaremetresalespricesthanapartmentsinlowerdensityareas.Typicallytheapartmentsinthesquarekilometreswiththehighestdensitysellathigherprices.IMPLICATIONSOFRESEARCHRESULTSWithSydneygoingthroughanapartmentboomtherehasbeensomeconcernfromlocalcommunitygroupswhobelievetheinuxofapartmentswilllowerthevalueoftheirownassets.Atensionhasrisenbetweendetachedhousedwellersandapartmentdwellerswiththebeliefthathighriseapartmentsareloweringvalues.Ourresearchclearlydemonstratesthatapartmentvaluespersquaremetregoupwithgreaterdensity.AnapartmentinhighriseChatswoodwillbe2000asquaremetremorevaluablethanamid-riseapartmentinLindeld.Thedetailsofthesedierencesareoutlinedinthispublicaoninmoredetail.MOREDETAILSThoseinterestedinmoredetailontheresearchprojectcancontacttheUrbanTaskforcebyringing0292383955oremailingadminurbantaskforce.com.auResearchdemonstratesthatthemostdenseareasforapartmentshavethehighestsalespricesTheUrbanTaskforceiskeentohaveresponsestotheproposalsillustratedinthisissueofURBANIDEASandwewelcomecommentstoadminurbantaskforce.com.auChrisJohnsonAMChiefExecuveOcerUrbanTaskforceAustraliaCreditsCovermapbyResearchNowOurresearchclearlydemonstratesthatapartmentvaluespersquaremetregoupwithgreaterdensity. 3SydneysdensityfollowstherailwaylineWith21squarekilometresaboveadensityof8000peoplepersquarekilometreitisinteresngtoseejustwherethesedensityhotspotsarelocated.MostofcourseareclosetotheSydneyCBDwiththePyrmontpeninsulaPosPointandSurryHillsranghighly.OutsidethisareaitisthemajorrailwaystaonsthataractdensityincludingChatswoodStratheldCanterburyBankstownBurwoodandParramaashowingstrongdensies.Thecurrentguresarefrom2011sotheboominapartmentsinParramaaandotherinnercityareaswillnodoubtturnthemapintoevenmoreredsquares.InnercityeasternsuburbslikeWaverleyandRandwickalsodemonstratehighdensies.EventheSydneyCBDiscomparavelylowwithmostofthehighrisebuildingsbeingforcommercialuses.WithaboomunderwayinSydneyforapartmentbuildingsitwillbeinteresngtoseejustwherethenextgeneraonofdensityhotspotswillbelocated.Thiswillpartlybeinuencedbyplanningpolicyandpartlybytheatudesoflocalcouncilstonewdevelopment.Itisencouragingtoseethatthe2014MetropolitanStrategyforSydneyAPlanforGrowingSydneyhasquiteclearprioritygrowthareasthatfollowalongtherailwaylines.Theseareclearlyshownwiththebluegrowthcorridorsintheplanillustratedabove.Londonhas327sqkmover8000peoplepersqkm.Imagebyperesanzshuerstock.comMapofSydneyshowinghowdensityisconnectedtorailwaylinesSydneyhas21sqkmover8000peoplepersqkmdarkredSydneygrowthtofollowrailwaylinesRydeCParramattaCAuburnCBankstownCSydneyCCanterburyCWarringahAWilloughbyCCanadaBayAMarrickvilleAManlyAStrathfieldAKu-ring-gaiAWoollahraARandwickCLeichhardtALaneCoveAWaverleyAAshfieldAMosmanANorthSydneyAHolroydCBurwoodAHuntersHillATheHillsShireABotanyBayCRockdaleCHornsbyATheHillsShireAFairfieldCHurstvilleC 4AVERAGEAPARTMENTSALESm2ChatswoodapartmentsaremorevaluablethanthoseinLindfeldWehavemeasuredsaleswithinasquarekilometreofChatswoodTownCentrewhichhasadensityofover8000peoplepersqkmandfoundthattheaverageofthelast15apartmentsalesis8997persqm.ThisreectsthestrongmarketinChatswoodtowncentrewhichhasmanyhighriseapartmentsclosetoameniesincludingtheatrescinemasshoppingcentresandrestaurants.AfewstaonsnorthofChatswoodisLindeldwhichhasmuchlessheightandlessdensity.TheABSsquarekilometreindicatesadensityofbetween2000and5000.WhileapartmentsarebiggerinLindeldtheiraveragesalesis6415persqm.ThisisconsiderablylowerthantherateatthemuchdenserChatswood.8997AVERAGEAPARTMENTSALESm26415CHATSWOODLINDFIELDPacificHighwayPacificHighwayPacificHighwayPacificHighwayRailwayStreetFullersRoadVictoriaAvenueStanhopeRoadHighfieldRoadBalfourStreetTreattsRoadJohnsonStreet 5ParramattaapartmentsaremorevaluablethanthoseinWestmeadParramaatowncentrehasadensityof5to8000peoplepersqkmwhilenearbyWestmeadhasalowerdensityof2to5000peoplepersqkm.TherecentsalesofapartmentsinParramaaindicateanaveragesaleof5938persqmwhilethoseofthelessdenseWestmeadare4789persqm.ThehighervalueforParramaaapartmentsrelatestothegreaterdensityinthecitycentreandtheameniesthatcomewiththis.Parramaastaonisamajortransportinterchangetherearemanyculturalfacilies.WestmeadalsohasgoodjobpotenalswiththemajorteachinghospitalandtheChildrensHospitalwithinwalkingdistance.DensiesarelowerbecauseapartmentbuildingsarenothighriseasisthecaseinParramaa.WestmeadalsohasgoodaccesstoParramaaParkbuttheParramaaCBDalsohasthis.AVERAGEAPARTMENTSALESm25938AVERAGEAPARTMENTSALESm24789PARRAMATTAWESTMEADChurchStreetHarrisStreetWigramStreetHassallStreetGreatWesternHwyMacquarieStreetHassallStreetBridgeRoadAlexandraAvenueChurchAvenueMoreeAvenueHawkesburyRoadChurchStreet 6AVERAGEAPARTMENTSALESm2RandwickapartmentsindenseareasoutperformZetlandapartmentsRandwickhasanumberofareasthathavehighdensiesover8000peoplepersqkm.Wehaveselectedoneoftheseandmeasuredover15recentsalesofapartments.Theaverageapartmentsalepriceis9321persqmwhiletheaveragesalepriceofthenearbyZetlandis6651persqm.ThesquarekilometrewearelookingatinZetlandhasalowerdensitythanRandwickwith2to5000peoplepersqkm.TheRandwickdensityisdrivenbythetransportcorridoralongAnzacParadeandtheclosenessoftheUniversityofNSWandofthePrinceofWalesHospitalandtheChildrensHospital.ThelowerdensityareaofZetlandincludesmediumriseapartmentsanddoesnotincorporatetheVictoriaParkdevelopment.9321AVERAGEAPARTMENTSALESm26651CarringtonRoadBotanyRoadWyndhamStreetBourkeStreetBourkeRoadMcEvoyStreetMandibleStreetAvocaStreetCoogeeBayRoadCoogeeStreetStMarksRoadAlisonRoadAlisonRoadRANDWICKZETLAND 7AVERAGEAPARTMENTSALESm2PottsPointhighrisehashighersalesvaluethanEdgecliffPosPointiswellknownastherstresidenalhighriseprecinctinAustralia.InitsearlydaysPosPointandKingsCrosswereseenasexceponalprecinctsforanalternavelifestyle.TheexampleofcosmopolitanlivingepitomisedbyPosPointhasnowspreadacrossmetropolitanSydney.PosPointissllholdingitsownwithrecentapartmentsalesgivinganaveragesaleof11173comingfromadensityover8000peoplepersqkm.NearbyEdgecliwithalowerdensityof5to8000peoplepersqkmhasanaverageapartmentsaleof8326persqm.WhilethisisahighgureitdoesnotmatchtheuniquevalueofapartmentsinPosPoint.PosPointhasabustlinglifestylewithmanyrestaurantscafesbarsandnightclubs.OsengthisveryurbancharacteristheclosenessofSydneyHarbourandoftheSydneyCBD.ThereisarailstaonnearbyasthereisatEdgecli.ThelowerdensityofEdgclimeanstherearelessrestaurantsandbarsbutsllagoodcosmopolitanmixisavailable.11173AVERAGEAPARTMENTSALESm28326KingsCrossRoadGreenknoweAvenueRoslynGardensDarlinghurstRoadNewSouthHeadRoadEdgecliffRoadManningRoadOceanStreetHarrisStreetOceanAvenueDowlingStreetVictoriaStreetPOTTSPOINTEDGECLIFF 8GPOBox5396SydneyNSW2001Level1232MarnPlaceSydneyNSWLevel6LondonCircuitCanberraACTT0292383955F0292229122Eadminurbantaskforce.com.auWwww.urbantaskforce.com.auDENSITYPRICEThisedionofUrbanIdeasusesresearchbyPhDcandidateManKinLamtoseeifapartmentsaremorevaluableinareasofgreaterdensity.Theresearchconrmsthaturbanareasofhigherdensityhavesalespricesforapartmentsthatarehigheronapermetrebasisthanareasoflowerdensity.TheresearchusestheABSdensitygridandRPDatarecentsalesinformaon.ResearchSupportedby