South-East Sydney has enjoyed some of the lowest property price reductions across Greater Sydney.
CoreLogic data and analysis by RiskWise Property Research and have shown despite a downturn in the Sydney property market, the Eastern suburbs and City and Inner South had losses of only -2.4 per cent and -2.6 per cent respectively.
This is compared to Sydney dwelling values which peaked in July 2017 and over the next 12 months fell by -5.4 per cent.
While some have been discouraged by the current downturn as well as the reduction in investor activity due to lending restrictions, the situation is not as grim as many would think, at least in South-East Sydney.
In fact, around 40 per cent of properties are still being purchased by investors with a long-term view to capital gain.
This region in the long term is projected to enjoy strong capital growth, particularly due to its forecast population growth and the ongoing demand for this popular area.”
According to the City Futures Research Centre, the South-East Sydney region which had a residential population of 180,810 in 2011, is projected to double this by 2031.
This means the area will need an additional 80,000 dwellings from 2011.
It comes at a time when the Greater Sydney Commission has been established to create an ambitious three-city plan over the next 20 years.
The Metropolis of Three Cities will become the Eastern Harbour City, the Central River City and the Western Parkland City.
The aim is to address a rising population, unaffordable housing and increasingly congestion. With Sydney’s population expected to double to eight million by 2056, the idea is for residents to live within a half-an-hour commute to their closest CBD.
Within the Eastern City District there are plans to create an Innovation Corridor, health and education precincts and strategic centres to boost innovation and creative industries alongside knowledge-intensive jobs growth.
This is all good news for those seeking long-term capital growth, but it is important to distinguish between houses and investor apartments.
There will be strong demand for houses and units suitable for families but in some areas where there is oversupply of units, such as Rosebery, Eveleigh, Zetland and Waterloo, this obviously will not be the case.
It’s also important to note that the top end of the market has been impacted more than the lower end of the market which has generally been holding well based on CoreLogic data.
The bottom line is to think about the long term and look for areas within the greater South-East area, where the population is likely to swell, infrastructure and the economy to grow and therefore employment to rise.
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