Sydney boasts the greatest housing price increase of any Australian city by a substantial margin. The Sydney property market continues to top Australian Property Monitors quarterly analysis of price movements, with houses and units showing consistent price increases.
We expect Sydney's property investment market will remain strong beyond 2016, but it’s not going to be that overheated market we’ve experienced. Most analysts are predicting that we’re going to have a market that’s a bit more discerning and we’re not going to see that same urgency.
According to research by Which Investment Property, seven out of the 10 suburbs that were most in demand by potential buyers online, are in and around Sydney.
The Sydney rental market too remains among Australia’s highest. Mosman was identified as the country’s second most expensive rental suburb by R.P. Data, with a median rental rate of $1,500 per week. Woollahra, Seaforth, Roseville and St Ives were not far behind.
Infrastructure Developments in Sydney
The population of NSW has grown consistently over the past decade but the rate of home building has failed to keep pace. Based on population and demographic projections by the Australian Bureau of Statistics, the Housing Industry of Australia, NSW will be home to an additional 412,300 households by 2020.
Similarly, the Sydney Metropolitan Strategy tells us that Sydney will need to cater for an extra 1.12 million people in the next 25 years.
More than 640,000 new homes will be needed. About a third will be directed towards new releases but the rest are to be built in established suburbs. The CBD will play host to about 55,000 new homes by 2031.
The plan is to have these homes concentrated around established suburbs within walking distance to shops, transport and services.
Large infrastructure development can be an important leading indicator for property prices because it reflects potential population movement. The M7 and M4 freeway and link systems in Sydney will have a "profound" effect on population shifts.
Where Will You Find Value in Property
If you are going to buy an investment property in this market, you will want to have an eye for both up-and-coming suburbs and the critical issue of rental yield. Premium suburbs within 10 to 12km of the CBD, near water, are likely to perform very well indeed.
The downside here is that the property prices in these areas are already very high relative to investment levels in other Australian capital cities.
For those thinking of property investment in the Sydney real estate market there are many issues to consider. The gains can be great, but it’s important to make prudent decisions.
Location (suburb and proximity to transport and facilities), type of property, the amount you want to spend (areas where price growth has been good in recent years now have a high entry level) and the returns you can realistically expect are especially important factors to consider.
The Art of the Long View
When it comes to saving for your retirement, nothing beats putting your money in real estate. You get a tangible asset that cannot just vanish off someone’s bottom line or in a crash of the market.
Remember though, property investment is a long term strategy.
The secret is to spread the risk over several different investment properties so your eggs are never all in the same one basket.
Sydney's diverse geographies offer just that.
At Property Investors, we can help show you not only how to buy investment property in Sydney and in other Australian cities, but how to start turning a profit almost right away.
Our team has years of experience in guiding ordinary people towards financial independence and long lasting wealth through smart investments that will pay out for decades to come.
Making the Right Property Investment Decisions
At Property Investors, we offer a variety of investment options in this exciting city, from buying a house and land package to building a brand new home.
We are able to take care of the entire deal for you and, whether you live in the home or rent it out, it will be an excellent investment.
When it comes to residential investment property, speak to one of our Perth-based property specialists who will make sure you get all the relevant and necessary property market information in order to make an informed decision.