Sydney CBD apartment numbers are rising at a rapid pace as developers offer upmarket dwellings in the heart of the city at sites once the domain of office towers.

Investors and owner-occupiers are heading back to take up residence in the growing number of high-quality projects.

Charter Keck Cramer says in its report of the first half of 2021 that demand for apartments will continue to meet the needs of those who do not want the traditional quarter-acre block but it will not be the typical “investor grade” stock that has dominated apartment supply.

“The ageing of the baby boomers also means that the number of downsizers and empty-nester households will also accelerate,” the research says.

One of the latest is the planned $300 million new City Tattersalls Club, which will offer 241 high-end apartments in the centre of the city.

The site at 194-204 Pitt Street is being redeveloped by a consortium led by Singapore-listed First Sponsor and Melbourne’s ICD Property and had its stage 2 development application approved this week. It will also include a 101-room boutique hotel, Hotel Indigo, atop the 150-year-old City Tatts club.

Attraction for purchasers are panoramic views of Hyde Park, Darling Harbour and towards Circular Quay.

ICD’s Property managing director Matt Khoo said developing new residences in the very heart of Sydney’s CBD was “not something you see every day. We could not be more excited by this rare opportunity”.

Getting the property conceived and ready for development has been a long process, starting in 2013 and progressing with different developers.