Investors and first-home buyers are fighting it out for the best Sydney properties at the lower end of the market, and according to a report in the Sydney Morning Herald, investors are winning.
Even though young singles and couples make up at least half of the large numbers still attending open homes for the most affordable properties, they are struggling to compete with the fatter wallets of investors.
Apartments have long been the first choice for investors because of their higher returns on lower outlays and the ease of maintenance. But it’s also increasingly the preference of first-home buyers because the lower price means they can buy closer to the city.
Senior economist at Australian Property Monitors, Andrew Wilson, says first-home buyers are being priced out of the Sydney market. “People are seeking an entry point that keeps getting higher and higher.”
With little new construction and increasing demand the value of well located near city apartments in Sydney are still rising slowly and rents are increasing strongly as many first home buyers remain tenants longer.
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