With the Sydney housing market recording a 17.15% increase in average house price in 2014 and the NSW country market recording a 7.38% increase, according to Residex, its time to ask some tough questions.
Can the NSW property market continue to rise in value in 2015?
What’s driving the NSW real estate market?
- NSW has rocketed to the top of the rankings as the nation’s leading state economy, according to CommSec’s most recent State of the State report.
- NSW’s annual population growth rates are in great shape.
- NSW’s housing construction sector is being fuelled by low interest rates and high investor demand after playing years of catch up.
- Tenancy vacancy rates are at record lows of just 1.8%, according to the Real Estate Institute of Australia.
What’s ahead for the NSW real estate market in 2015?
- Sydney property prices will continue to grow between 4 – 5% p.a. over the next 5 – 8 years, according to Residex.
- The price growth in Sydney is probably going to continue for a while – as it’s still coming off the back of a decade of relatively average price growth, according to Harley Dale at the Housing Industry Association.
- The QBE Australian Housing Outlook 2014 – 2017 report predicts total house price growth for Sydney of 13% for 2014/2015 and 2015/2016. The rate of price growth is expected to begin slowing throughout 2015/2016.
- Sydney will become more and more a city of renters, according to John Edwards from OnTheHouse.com.
- The current price growth in the Sydney market will start to flow through to other regional markets at a greater rate in the next 12 months, according to the QBE Housing Outlook.
15 NSW suburbs set for growth in 2015 for under $400,000:
|Property type||Median price||Vacancy rate||Rental yield|
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5 additional NSW suburbs set for growth in 2015 for under $500,000:
- Cambridge Gardens
Leading infrastructure projects in the works for NSW:
- $8.3 billion North West Rail Link.
- $6 billion Barangaroo development.
- $11.5 billion WestConnext road project.
- $2.7 billion M! – M@ link.
- $3 billion NorthConnex project.
- $1.6 billion new CBD and South East Light Rail Project.
- $2.5 billion Darling Harbour Convention Centre.
- $3.5 billion Badgerys Creek Airport.
Important population statistics for NSW:
- Forecast population for 2015/16: 7,703,000.
- Forecast population growth for 2015/16: 1.5%.
- Population growth hotspot: Greater Sydney.
- Migration trend: As house prices continue to rise, more and more residents will move interstate.
Who’s been buying property in NSW in 2014?
58% of the loans written for the Sydney market in 2014 were for investors, with the majority of these investors being driven into the market to chase short term gains.
This is the highest portion of lending to investors in recorded history.
There was also solid growth in loans for upgraders and downsizes during 2013/14.
NSW’s 7 most under supplied real estate markets in 2014:
- Kurnell (units)
- Clontarf (units)
- Bossley Park (units)
- Dudley (units)
- Daceyville (units)
- Winston Hill (units)
- Georges Hall (units)
Warning: Pumped On Property are not investment advisers. This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. All readers should seek independent and qualified investment advice before purchasing a property.