As the market begins to get back on track, Sydney is reclaiming its first rank for the purchase of high-end residential properties in Australia
After a period of decline, the national housing market appears to be gaining ground as the slowdown in Sydney and Melbourne begins to ease.
According to the CoreLogic Real Estate Value Index for July 2019, prices in Sydney have been rising for two months – a positive sign that has spilled over into the rest of the country. In addition, despite the recent price declines, the capital's $ 1 million market still accounts for a significant share of sales, with 30.2% and 16.4% of all home and office sales, respectively. Units amounting to at least $ 1 million.
This allowed Sydney to reaffirm its status as Australia's leading residential market in the Knight Frank Prime Global Cities Index for the second quarter of 2019, above Brisbane, Melbourne, the Gold Coast and Perth.
"Sydney's main market is holding up well, recording healthy growth of 2.5% per year, and is the best prestige player in Australasia," says Michelle Ciesielski, head of residential research at Knight. Frank.
"In Sydney, the performance of prime real estate is in its sixth year of positive annual growth, posting a remarkable 8.7% growth over this period. This is above the average of 1.8% recorded in the previous six years. "
Throughout the period of decline, the units also stood out, even surpassing homes. CoreLogic Research Manager Tim Lawless said, "Despite the unprecedented quantity of new apartment buildings on the market, the Sydney and Melbourne unit values ​​have consistently outperformed the construction sector. single-family homes during the downturn, and this trend continues in the recovery phase. "
In addition, the downturn may have shown investors that a strict focus on capital growth may not always be paying off, as observed by the Managing Director of Real Estate Investar, Clint Greaves, based on recent trends in research.
"Real Estate Investar has seen an interesting trend: the focus on increasing cash flow and value-added real estate investment opportunities – there has been a greater focus on high-yield buildings and positive cash flow, he said.
"This is probably because investors can not rely on capital growth to generate returns on the current market, as well as on the need to meet increasingly stringent banking service requirements."
This new direction makes viable investment opportunities for the NSW regional suburbs, as many of them offer high rental yields at reasonable prices.
SUBURB OF WATCH
QUEANBEYAN: Economic Alternative to Canberra
Located just on the border between NSW and Canberra, the suburb of Queanbeyan was recently the place to settle for many Canberrans whose price is set at the exit of the country's capital.
Property values ​​have been rising since 2014 and unit prices increased 7% in the 12 months to July 2019. Even then, homes and dwellings remain relatively affordable, at median prices below $ 500,000 and $ 300,000, respectively.
Demand for rental housing for both types of properties has increased, resulting in an increase in rents of 5% for homes and close to 10% for units. With yields that keep the market 4.7 to 5.5%, this certainly seems to be a good market to invest in.
Location : Queanbeyan is located on the border between NSW and ACT
Affordability: The median values ​​of houses and units are less than $ 500,000
Top suburbs:
tank
,
Newcastle
,
West Wodonga
,
Narara
,
East Victoria Park
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then make the necessary arrangements for a local Australian mortgage broker to contact you and solve the problem What features or what types of loans are suitable for your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
