There’s no denying that Sydney-siders have been highly influential when it comes to encouraging Australia’s slow but steady transition to apartment living.
The Harbour city has led the way in constructing higher density dwellings for the last few decades, so when senior economist for Australian Property Monitors Dr Andrew Wilson, recently stated that Sydney’s renewed love affair with apartment living and investment is continuing, it came as no surprise to me.
Sydney is clearly the best performer for median unit price growth of all the major capitals over the year to date, with Perth the next best, rising by 1.7 per cent. Conversely, Melbourne apartment prices fell by 1.7 per cent and in Brisbane they fell by 3.6 per cent over the first six months of 2012.
Sydney’s median unit price is tracking around its peak level of $465,221 recorded over the March quarter this year.
Investors are back
A big influence on rising apartment demand in Sydney this year has been an increase in investment activity. Latest Australian Bureau of Statistics data shows the value of residential investor finance for NSW up by 6.6 per cent over the first half of this year against last year. Investor loans are also 3.8 per cent higher to June compared to the first half of 2010, which makes NSW the only state in positive territory.
Dr Wilson expects buyer activity and price growth to continue for the rest of the year in Sydney’s apartment market.
At Metropole we’ve been noticing an increasing demand from investors keen to buy into the Sydney market, where apartments are more affordable than some initially thought and in general yield strong rental returns.
Particularly popular right now are areas around Sydney’s inner west, which is going through significant gentrification and showing strong capital growth, along with the ever popular inner eastern suburbs.
Peace and profits
A great example of the investment gems to be found in Sydney at present is this 2-bedroom apartment recently purchased for a client in Ashfield.
Located at the rear of a small boutique block, the unit has a lovely leafy outlook, is close to all amenities and best of all, had an existing tenant providing guaranteed instant returns for the investor.
With its own car space and the potential to rent for between $400 to 420.00 per week with a bit of a minor makeover, the proven capital growth of Ashfield will ensure this investment ticks all of the client’s boxes for years to come.
The purchase price of $420,000 was negotiated prior to the auction and settlement occurred in July.
If you want to get in on the action in Sydney and would like to secure your own winning property investment, please give us a call here at Metropole or join us for a free property briefing. Click here to register your interest and for more details now.
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