Sydney should close 2019 in a more solid position as it strives to regain its crown of the best performing Australian market
It seems like there is nowhere to go in Sydney, but as it picks up ground after its recent decline.
The housing vacancy rate report published by the Real Estate Institute of NSW for August 2019 showed that the state's rental market had again reached its pace, registering positive results for Investors. In the Hunter region, vacancy rates were the lowest of the year, while rates in interior, medium and exterior Sydney were mostly stable.
“It is positive to see the Sydney rental market stabilize after a period of volatility. Early indicators suggest that, as we enter the warmer months, we can expect lower vacancy rates, "said Tim McKibbin, CEO of the Real Estate Institute of NSW.
"It will be interesting to see if this will translate into the Illawarra or lead to even more competition in the Hunter market."
The number of construction projects in the pipeline bodes well for infrastructure development across the state, with many of these projects funded by the state government, according to the CoreLogic CHIP report. (Cordell House Index Price) for July 2019.
With such solid indicators on the horizon, confidence in the market should be reborn.
"Sydney and Melbourne, due to the sharp declines recorded in these cities – on average between 7% and 15% in 2019 – are starting to see a return of confidence and will see the growth of these new lows established in 2020", says Paul Wilson, director of Income2Wealth.
"The first homeowners will hope this will give them a chance to re-enter the market, and renovators will see this as an opportunity to upgrade while perceived affordability has returned to the market."
However, some investors hesitate to return to the capital market. The CoreLogic CHIP report noted that unplanned apartments in Sydney had low ratings, which could become an obstacle for future developments.
"Investors are leaving the unplanned apartment sectors for many reasons, including concerns about building standards," warns Metropole Property Strategists national director Kate Forbes.
"Many of those who signed up for the plan a few years ago are now struggling to settle, valuations being completed at a price far below the contract price at a time when banks are more reluctant to lend on these properties. "
SUBURB TO WATCH
BEXLEY: Real estate prices fall in southern Sydney
The market for houses in the southern suburbs of Sydney from Bexley continues to run its course. Values ??fell 17.6% year-over-year to August 2019, maintaining a negative trend seen in the past three years when prices fell 12.4%.
Although the units performed better than the houses, their median price also fell 4.2% in the past 12 months.
Located about half an hour from Sydney's CBD, Bexley is a mixed-use suburb, with residential, commercial and industrial developments. Forest Road is its main commercial area and State Transit Authority buses transport commuters to and from the city.
Location: Bexley is about 30 minutes' drive from Sydney's central business district
Convenience: In Bexley, the main shopping center is on Forest Road
Main suburbs:
Nundah
,
loror park
,
stafford hts
,
Campsie
,
Marrickville
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