Sydney House times entry to Sydney CBD market as demand far outstrips supply

The timing couldn’t be better for the recent launch of Sydney House, the newest mixed-use tower in the heart of Sydney’s CBD.

Joint venture partners—Singapore-listed First Sponsor and Melbourne-based lifestyle developer ICD Property—chose to bide their time before launching the project, a redevelopment of the landmark City Tattersalls Building on Pitt Street.

They opted to wait until the complex build was well underway—a project that involves retaining the heritage-listed podium while constructing a soaring 55-storey glass tower above.

Their patience, aimed at instilling market confidence in the project’s delivery, has clearly paid off.

According to Charter Keck Cramer's H2 2024 State of the Market Report, the Sydney apartment market faces a significant supply-demand imbalance with continued population growth paired with limited new supply. The report highlights the post-pandemic impact on the apartment supply pipeline, with many planned projects placed on hold or discontinued, due to the broader construction environment.

Sydney House is more than two years into its construction program. Delivery partner Richard Crookes Constructions commenced construction in Q1 2022 and is expected to complete in early 2027.

A recent research report published by CBRE in June 2025 suggests that Australia’s population growth is set to experience continued growth of up to 15 per cent by 2030 supporting the requirement for new housing solutions.

The report highlights that the Sydney apartment supply over the next five-year period is forecast at 12,200 dwellings per annum with a demand forecast requirement of 30,000 dwellings. This suggests that demand for new apartments in central Sydney is expected to exceed supply for years to come, poising the market for a period of growth.

SRM Residential Partner and former CBRE Director, Tim Rees says that around 80 per cent of ‘right-sizer’ purchasers seek a property that’s easier to maintain.

"Approximately half see this as part of their retirement plan, and 40 per cent do so as they want the proceeds of their former home for other things," Rees says.

 

Sydney House will comprise 241 premium apartments above a new 135-room boutique hotel. BVN Architecture has led the design of the tower, which will rise above the retained heritage podium. That podium, to be carefully restored by FJC Studio, will house a collection of high-end hospitality venues once complete.

Rees says that Sydney House will be Sydney CBD’s newest icon, blending modern architecture with historic grandeur located in one of the most prestigious enclaves of the CBD. 

“Pitt Street is arguably the most significant street in all of Sydney," Rees says.

"Just a stone’s throw from Circular Quay, The Opera House, Hyde Park and Darling Harbour, Sydney House offers seamless connection with the CBD and beyond. Pitt Street Mall is literally across the road, and there is an abundance of dining venues in close proximity. The outlook from Sydney House will be breathtaking with views of Hyde Park and Sydney’s famous iconic landmarks on offer."