According to Ray White's data for the 2022/23 financial year, Ermington and Rydalmere topped the list for the number of demolition approvals, followed by Concord, Ryde, North Ryde Eastwood, and Umina in the Central Coast suburbs. These inner suburban areas have become hotspots for demolition, providing land resources for the construction of new residences.
An example is a couple, Minh and Van Hoang, who purchased a dilapidated house in Ryde with plans to demolish it and build a duplex. They see Ryde as an area popular among young families and consider it a sound investment and choice.
Although the project has been challenging, their designer and builder have done an excellent job. They have recently completed the five-bedroom duplex and plan to put it on the market.
According to Wayne Vaughan, a real estate agent at McGrath - Epping, new housing in Ryde and surrounding areas is highly sought after by Asian buyers. The Hoangs' duplex attracted nearly 100 groups of potential buyers within two weeks of its listing. This demonstrates the high demand for new housing in the Sydney market. The Ryde City Council has flexible regulations for duplex construction and understands the market demand for new residences.
William Clark, a data analyst at the Ray White Group, points out that demolition hotspots in Sydney are often closely linked to government investments and large infrastructure projects. In particular, the scale of development in areas like Ermington and Rydalmere is substantial, and government investment is complementing residential development.
Old buildings are being replaced with higher density and higher-quality constructions. This may signify a trend toward urbanization to meet the continuously growing housing demand.
Apart from Sydney, some areas in New South Wales have also seen similar demolition hotspots. For instance, places like Balgownie and Fairy Meadow have also received a significant number of demolition approvals.
However, forecasts from the Master Builders Association of New South Wales indicate that new home construction has experienced a period of decline following a peak in recent times. Nevertheless, it is expected that the number of new housing starts in New South Wales will remain relatively stable over the coming years.
