Sydney is one of World's most vibrant gateway cities. Starting of as little more than a transport hub down under, in modern times it has fully utilized its unique geographical position, becoming sort of a mediator between the Old World, the East and the West. This was not done by arms, but by trade, and the market forces governing the city are especially prominent when taking a look at its housing market.
Sydney is a prime example of an urban sprawl, with more than 70 percent of the city consisting of separate houses, with many of these dwellings having historical significance, being sprinkled along desirable coastal landscape of Sydney Harbor. In the last 30 years, there has been a noticeable trend towards denser living conditions, but these efforts coincided with the city turning into a high end real estate market. High quality begets higher pricing, and Sydney is one of global hotbeds when it comes to owning or renting apartments.
One notable trend is the transformation of what used to be poor, working class neighborhoods, populated with easily noticeable terraced houses. These areas once housed manual laborers, and now owe a dubious thanks to gentrification for becoming the prime real estate on the city's market. It is small wonder that in these circumstances, a newcomer feels like he's arrived in a place where each moments puts a drain on his finances, whether he's trying to own a place, rent it, or look for a hotel that's not on the outskirts.
In the past few years, these circumstances have inspired a solution that tries – and succeeds – to wedge itself between these budget-straining variants. Serviced apartments e.g. in Sydney represent a middle ground that does not fall for a trap of being just a compromise, but instead tries to offer a more permanent solution for the temporary traveller.
In a city that is often ranked ahead of New York and London in terms of living costs, many companies have found it hard to draw in high quality hires and offer competitive salaries that will not get slashed by prices that residents openly call ludicrous. A traveller with an average budget will find it hard to enjoy the city's amenities if he's unwilling to utilize some of its many hostels, while an employee on a more or less of a permanent stay can feel unwelcome in such surroundings.
Serviced apartments try to offer a solution that has both the beneficial psychological effect and represents a remedy for a strained wallet. What started off as a niche market quickly turned into a sought-after solution, thanks to the deceptively simple formula: offer all the amenities that you would expect out of a home, and custom fit it to better suit the customer, adding a personal note to the renting experience and providing privacy that is often absent in the impersonal rows of hotel rooms.
It is important to note that Australia, and Sydney in particular, enjoys a large influx of Asian tourists thanks to its unique position. The Gold Coast market currently sits at $3.4 billion, and all projection point towards an upwards trend. Serviced apartments for rent have responded well in this climate, and according to IBISWorld Report (https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/serviced-apartments.html), they show the steepest upward trend out of all accommodation variants. With Australia's focus on expanding both the business and tourism travel sector, this success story is part of a global trend, but in essence remains firmly Australian, considering it is a story of adaptation.