Two in every three properties in Sydney's epic building boom are apartments

Photo by Dani Abramowicz/FilmMagic

If you couldn’t tell by the number of cranes littering the skyline, Sydney, Australia’s largest and most expensive housing market, is in midst of an epic residential building boom.

According to Australia’s Housing Industry Association, citing figures released by the New South Wales government, there were 30,191 new homes completed in Sydney during 2015/16 financial year, the highest total seen since 1999/2000.

Not only was that 10.4% higher than the 2014/15 financial year, apartment completions accounted for two in every three homes built last year.

After years of building out, it now appears that developers are building up.

“The output of the residential building industry has provided homes for almost 80,000 people in the Sydney area during 2015/16 alone. It is important that Sydney’s dwelling stock expands in order to accommodate the strong, migration-driven growth in the local labour market,” said Shane Garrett, senior economist at the HIA.

“The strength of new home building in Sydney over the past few years owes much to the low interest rates in place, as well as the rebound in tourism and skilled services in the city,” he added.

The data released by the NSW government fits with recent building approvals data from the ABS.

According to the ABS, there were 43,929 other residential dwellings approved for construction in the year to August, well ahead of the 28,469 level for free-standing houses.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.