Sydney is the largest, strongest and most expensive property market in Australia. Growth has been so significant over recent years, it’s become a common worry that Sydney property is now overpriced, with many people believing it’s the wrong time to enter or invest in the market. Sydney is one of the most desirable places to live in the world, and there’s no denying that the amount of people looking to buy property is substantially higher than the supply available on the market. This means buying a property in Sydney can certainly be challenging. But, there are plenty of legitimate reasons Sydney is still the perfect place to buy.
1. Capital growth continues
Sydney’s property market has experienced phenomenal growth over the last three or four years. Although the market began to show signs of slowing at the start of 2016, and there was talk of the property bubble coming to an end, investors need not worry, as the figures are still demonstrating clear growth. According to CoreLogic RP Data, dwelling values in Sydney rose by 3 per cent for March, 5.8 per cent over the quarter and 13.9 per cent over the year. Low interest rates and renewed confidence after the election means growth is not expected to end anytime soon, so now is still the perfect time to invest in Sydney.
2. There are still bargains to be snapped up
While strong growth is still being seen in the Sydney property market, it doesn’t apply to all suburbs. There are still some bargains to be had – you just need to know where to look. In the inner city areas, as well as the Eastern suburbs, record prices are being set on a regular basis. But Sydney’s outer ring and western suburbs are not showing the same sort of growth, and still offer opportunities for the astute buyer. Research is key to being able to snap up the right property. Knowing the right suburbs, the right streets, the current infrastructure and any infrastructure planned will give you the clearest view of your options.
3. An apartment boom
Australia is experiencing a monumental apartment boom at the moment – the biggest ever – with more than 270,000 new apartments currently being planned or constructed across the country. More than 88,000 of these will be in Sydney. While extra housing and development can be great in terms of providing better choice for buyers as well as renters, this sort of influx of new apartments can also have some downsides, with a tendency to increase vacancy rates and push rental yields down. Yet these risks are not seen to be relevant to Sydney. The Commbank Property Insights report
indicates that the apartments planned in Sydney are spread proportionately across a large number of suburbs, meaning there will be a greater depth to the market, yet without the risk of there being an oversupply of housing, or negatively impacting vacancy rates.
4. There’s no need to hold back for the market to steady
There is a perception amongst many that you should wait for the market to be at its best before you consider buying. But, that’s not necessarily true. If you’re looking to buy property as an investment, and you’re willing to look at it as a long-term investment, it’s not so important whereabouts in the cycle you decide to jump in – it’s more about when you get out. Property value tends to double within a 10 year span, so If you’re prepared to hang on to your investment for a while, you can still make significant capital gains no matter what you paid for it initially. If you’re a first-time buyer, and you’re ready to go with your deposit, don’t hold back. As long as you take the time to really understand what your spending limits are, and don’t overstretch yourself financially, it’s better to jump in now and start reaping the rewards of capital gain, rather than wait till the market steadies or drops.
5. Quality of life!
With some of the world’s most iconic architecture, a thriving city and business centre, funky inner-city suburbs and and countless beachside suburbs to choose from, Sydney offers a quality of life that is hard to beat. In fact, Sydney is officially recognised as one of the best cities in the world to live – placing tenth in the 2016 Mercer Quality of Living ranking
, and ranking higher than any other Australian city. So what makes Sydney so special? Sydney is home to one of the most beautiful harbours in the world; it has a fantastic climate that translates to long summers and sunny days, and, as a true multi-cultural city, it has a fantastic arts and culture scene to explore. The food and café culture in particular is outstanding, and each year Sydney puts on a New Year’s celebration that rivals the best in the world. Being surrounded by beaches, Sydney is a city that embraces sun, sea and sand, and it’s a city that offers some of the most special and unique lifestyle opportunities for anyone who lives here.
For many, finding the perfect property in Sydney might seem a daunting prospect, but with the help of a professional buyer’s agent, it’s still possible to find your dream home and not have to pay over the odds for it. Here at TBAS®
we can help you navigate the process from start to finish. We’ll give you valuable insights into the current market trends, help you to understand which suburbs are possible for you to buy in based on your budget, and we can even introduce you to opportunities that are not on the market.
Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304