Chinese-backed developer Greenland has reiterated its confidence in the Sydney apartment market by confirming it will launch its much-anticipated 1600-apartment Ashmore precinct project in Erskenville in inner west Sydney at the end of the year.
Together with its joint venture partner, Chinese group Golden Horse, it is likely to release about 300 in late December or early January, the company confirmed.
Greenland was not perturbed by the Reserve's Bank's "warning" last week that there would be an oversupply of inner-city apartments in Sydney, but the company agreed there could be some risks in Melbourne and Brisbane.
"In some parts of the country there appears to be large amounts of supply, but Sydney is the most stable and balanced when it comes to supply and demand," Greenland Australia managing director Sherwood Luo said.
"Even if supply peaks in 2017 or 2018, the supply and demand numbers are still in a balanced equation.
"There may be some areas in Sydney that may be in oversupply – and that's exactly why Greenland avoids all these hotspots."
Greenland is developing in Macquarie Park, Potts Point, North Sydney and the CBD – areas which it said are "cushioned" from a major correction because of continued demand.
"We positioned ourselves in areas that are not risky. We wouldn't say we are completely unconcerned, but what we are is we are conscious of market movements," Mr Luo said.
While a correction in prices was normal in any economic cycle, in the long term house prices in Sydney would always be on an upward trajectory, the company said.
Greenland would not be changing the pace of construction, saying all its projects were on track.
Greenland on Wednesday released stage two of its 900-apartment Macquarie Park "nbh" project – another 200 apartments to complement the first 100 sold two months ago.
