Investors to turn to new and off the plan apartments after federal government changes spark hunt for Sydney’s best sub-$1 million projects

The federal government’s proposed changes to negative gearing and capital gains tax concessions are expected to reshape where investors direct their attention over the coming years.

Under the policy settings, established properties would lose access to both incentives, while new and off-the-plan apartments would retain them, creating a clear advantage for buyers willing to purchase into the development market instead.

That shift comes at a time when the supply of traditional investor-grade apartments has already become increasingly limited.

For years, one-bedroom apartments formed the backbone of investor demand. Compact, lower-priced and typically positioned in high-demand locations, they were the type of stock developers actively brought to market.

Today, the development pipeline across New South Wales looks very different.

Projects are increasingly geared towards owner-occupiers, with larger three and four-bedroom apartments dominating many new developments. While there are still some one-bedroom and smaller two-bedroom configurations available, genuine investor-focused stock is no longer as common as it once was.

With investors now expected to look more closely at the new apartment market, we analysed the projects currently on offer across New South Wales for buyers reconsidering the established market.

We focused on developments priced around $1 million, a realistic ceiling for many investors in the current lending environment. In precincts closer to the CBD, that budget will typically secure a one-bedroom apartment, while in a number of growing middle-ring and outer suburbs, it can still stretch to a two-bedroom unit.

Danks St District, Waterloo

Price: From $985,000

One of the largest mixed-use developments currently underway in Sydney's inner south, DASCO Australia's Danks St District will transform a 1.7-hectare site on Bourke Street into a six-building residential precinct with more than half of the site dedicated to open space.

The project offers one, two and three-bedroom apartments, terraces and penthouses within walking distance of Surry Hills, Centennial Park and the future Waterloo Metro Station. For investors seeking a blue-chip inner-city location, it is one of the few opportunities to secure a new apartment under $1 million this close to the CBD.

Danks St District also has the sought-after 10-year Latent Defects Insurance by Resilience Insurance, covering an investor for any major structural or waterproofing issues that may arise within the first 10 years of the building completing.

Senso, Epping

Price: From $835,000

Epping continues to attract strong buyer demand thanks to its connectivity, schooling options and growing town centre. Senso, a five-building development by DASCO, will deliver 479 apartments adjacent to the future Epping Town Centre masterplan.

The project is just a short walk from Epping Metro Station, providing direct access to Macquarie Park, Chatswood and the Sydney CBD. One-bedroom apartments start from $835,000.

DASCO has also taken out Resilience LDI on Senso.

Willow, Wentworth Point

Price: From $735,000

Wentworth Point has emerged as one of Sydney's fastest-growing apartment markets, underpinned by major infrastructure investment and improving transport links.

Willow forms the latest stage of Sekisui House Australia's $2 billion Sanctuary masterplan and will deliver 309 apartments across a mix of low-rise buildings and a 28-storey tower. One-bedroom apartments start from $735,000, offering one of the more accessible entry points into Sydney's waterfront apartment market.

Mason & Main, Merrylands

Price: From $498,000

For investors focused on affordability and immediate rental returns, Mason & Main stands out as one of the few completed projects on this list.

The Coronation Property development comprises 415 apartments in the heart of Merrylands, directly opposite Stockland Merrylands and just 350 metres from the train station. Studios start from $498,000, while one-bedroom apartments are available from $635,000.

Zeste, Norwest

Price: From $755,000

The final apartment release within Sekisui House Australia's $1 billion Orchards masterplan, Zeste marks the completion of a community more than a decade in the making.

Positioned 600 metres from Norwest Metro Station, the project offers one to four-bedroom apartments and access to extensive communal amenities and established parklands. One-bedroom apartments start from $755,000.

The Residences at Wahroonga Estate, Wahroonga

Price: From $895,000

New apartment supply in Wahroonga is exceptionally rare, particularly at scale.

The first stage of the 64-hectare Wahroonga Estate masterplan will deliver 133 apartments surrounded by bushland and established Upper North Shore amenity.

For investors seeking exposure to one of Sydney's most tightly held markets, one-bedroom apartments start from $895,000.

Aeris, Melrose Park

Price: From $724,000

Melrose Park is set to become one of Sydney's largest urban renewal precincts over the next decade, with thousands of new homes planned alongside significant transport and retail infrastructure.

Aeris is the sixth stage of Sekisui House Australia's $5 billion masterplan and will deliver 468 apartments across three towers. One-bedroom apartments start from $724,000.

Dawn, Melrose Park

Price: From $704,000

Also within the Melrose Park masterplan, Dawn offers one of the lowest entry points on this list.

Developed by Sekisui House Australia and Hankyu Hanshin Properties, the project comprises 368 apartments across four buildings, with one-bedroom apartments starting from $704,000.

The Rothschild, Rosebery

Price: From $799,000

Completed projects are becoming increasingly difficult to find in Sydney's inner south, making The Rothschild a notable opportunity for investors wanting immediate rental income.

The Deicorp development sits within walking distance of The Cannery, Green Square and Gunyama Park, with one-bedroom apartments available from $799,000.

Larool Crescent, Castle Hill

Price: From $730,000

Castle Hill remains one of Sydney's strongest-performing metro-connected suburban markets, supported by major retail amenity and direct rail access to the city.

CPDM's Larool Crescent development will deliver 113 apartments and townhouses just 600 metres from Castle Hill Metro Station. One-bedroom apartments are priced from $730,000.

The Avenues, Zetland

Price: From $803,000

Directly opposite Gunyama Park and Aquatic Centre, The Avenues forms part of Deicorp's broader $874 million East Zetland precinct.

The development combines park-front living with proximity to Green Square Station and the CBD, while one-bedroom apartments remain available from $803,000.

The Kensington, Kensington

Price: From $1.03 million

While sitting slightly above the $1 million threshold, The Kensington remains one of the few opportunities to secure a brand-new apartment in Sydney's tightly held eastern suburbs.

Located just four kilometres from the CBD, the TOGA development benefits from direct light rail access and proximity to UNSW, Prince of Wales Hospital and the broader K2K precinct.

The building has recently completed, and will welcome residents soon.

Lillian, Erskineville

Price: From $1,075,000

Erskineville rarely sees significant new apartment supply, particularly in locations adjacent to major parkland.

Coronation Property's Lillian overlooks the new McPherson Park and sits just 3.5 kilometres from the CBD. While one-bedroom apartments are priced slightly above $1 million, the combination of location and limited competing supply places it among Sydney's most compelling inner-city apartment opportunities.

La Vera, Macquarie Park

Price: From $700,000

Macquarie Park continues to evolve from a commercial hub into one of Sydney's most significant mixed-use centres.

Urban Property Group's La Vera offers one-bedroom apartments from $700,000, placing it among the most affordable new apartment opportunities in a precinct supported by metro rail, employment and education infrastructure. La Vera is another project with the sought-after 10-year Latent Defects Insurance.