Are you considering buying an apartment in Sydney? Sydney’s CBD, as well as inner-city suburbs like Waterloo and Eastlakes, are incredibly popular places in which to live, play and work, and it’s no surprise that properties in these areas are always in high demand. However, is now the right time to buy in the Sydney apartment market? Here are a few things to consider:
The average cost of living in Sydney
Sydney is often considered to be one of the most expensive cities in the world but, with sensible budgeting, it doesn’t need to be. According to data from Numbeo, the current average cost of living without rent for a family is around $5,100 per month and $1,400 for a single person. This number is comprised of various elements such as transportation, grocery shopping, utilities, entertainment and leisure activities, clothing purchases, and dining out.
However, once you add in the cost of renting, the number significantly increases with stats from Finder indicating an average of at least $2,500 to $4,000 per month. Budget Direct finds that a single bedroom apartment will set you back an average of $2558.71 per month, while a three-bedroom apartment will average $4739.81.
With these numbers in mind, the fact is that renting a property isn’t the most economical option. Given Australia’s current extremely low interest rates, a mortgage on an apartment would be the same as (if not less than) your monthly rental repayments, with the final result being a property to add to your portfolio.
The current apartment market in Sydney
While COVID-19 may have affected people and properties across Australia in 2020, it didn’t take long for the property market to bounce back. In fact, some might say that it’s doing better than ever, with all signs trending towards continued growth and appreciation.
According to the Commonwealth Bank, Australia is on the “cusp of a housing boom”, and we can expect property prices to increase 16% over the next two years, rising 9% in 2021 and a further 7% in 2022. Meanwhile, ANZ bank predicts that Sydney’s housing price will continue to rise 19% through 2021 before slowing down to 6% in 2022.
The fact is that Sydney’s inner-city suburbs have always been high-demand places in which to buy. Because these areas are often densely populated and property stock is limited, however, it can be hard to get into the market. On the plus side, this means that if you do eventually manage to buy property in these areas, it will hold its value for a long time and remain an excellent long-term investment, even if you are no longer living there.
Property investment opportunities in Sydney
Now is a great time to invest in Sydney property. There are currently a couple of exciting property investment opportunities by Crown Group in Sydney’s inner-city areas. Arc by Crown Group offers apartments in the CBD and sets the benchmark for combining architectural excellence, aesthetic class, and luxurious amenities, enhancing the modern inner-city lifestyle we seek. Meanwhile, Mastery by Crown Group is a collection of five buildings in Waterloo which are set to reinvent inner-city living with its sleek lines and spacious interiors.
Are you thinking of buying a new apartment in Sydney? To enquire about our luxury apartments for sale, get in touch with Crown Group’s real estate agents today.