The NSW property market is usually hot, with Sydney its molten centre. As properties come onto the market they are being snapped up, as a result of high investor activity. Vendors are thrilled, consistently seeing properties under $1 million sold almost immediately – and with very good sale prices.
The Australian Bureau of Statistics backed up this real estate activity with data, announcing in September that the house price index had risen 7.6 per cent. While the traditional two largest housing markets of Sydney and Melbourne are driving this, it is Sydney which clocked up a house price increase of a whopping 11.4% in the 12 months to September.
What’s the answer? Your Investment Property magazine advises potential investors with their eye on the Sydney market to look further afield, or work harder in order to get a good deal. While the inner city suburbs of Sydney are in high demand, pushing many out of the market, astute buyers are looking to the outer suburbs and even up the coast to Newcastle to seek out better value for money properties.
Further afield evidence of this trend can be seen in the strong growth for entry level housing in regional NSW. Raine and Horne real estate group CEO, Angus Raine, recently predicted that based on current trends a housing price growth in regional areas of up to 15 per cent by April, 2014 is highly likely.