Demand for unit blocks on the rise
The development site market is slowing down along with construction activity due to the growing cost of materials, while labour demand is again increasing for unit blocks.
According to Ray White Commercial, across NSW three have been over $110 million in sales during the first 4 months of the year with yields remaining at historically low rates.
In metropolitan Sydney, yields have consistently been in the 3.00 per cent to 4.20 per cent range while regional assets have averaged 5.00 per cent.
With the average NSW unit block costing approximately $3.4million, this remains an affordable investment option particularly for cash-rich investors during a time of uncertainty in the share and broader property markets according to Ray White Commercial.