If the premise of successful property investment is to buy low and sell high, then now could be the ideal time to buy as confidence and demand return to the property market. So which signs should investors be looking for before snapping up an apartment for sale in Sydney? Let’s look at where the indicators currently sit for the city.
Interest rates are at a record low
Australian interest rates are at an historical low of 1.0% following two recent rate cuts by the RBA, providing further incentive to investors planning to take out loans. This type of drop can precede a return to consumer confidence and economic growth, providing an ideal environment for rising property prices. Investors will be looking to get in before this change occurs so they can offer their apartment for rent in Sydney and anticipate their expected growth in value.
Confidence in property is growing
Statistics are showing a 19.5% rise in the number of Australians who believe now is the right time to buy property compared to this time last year, according to July’s Westpac-Melbourne Institute Consumer Sentiment report. Early July results also show a significant boost in confidence, with auction clearance rates reaching almost 80% in Sydney. Where confidence and demand increase, prices can follow soon after, which is certainly welcome news for those with Sydney property in their portfolio.
The future is looking bright
Investors and others are anticipating a booming property market in inner Sydney within a matter of years. The 2018 Aussie/CoreLogic 25 years of Housing Trends report predicts that by 2043, the median unit value in Sydney will be $3.47 million from today’s $696,935.
As Crown Group CEO Iwan Sunito says, “Fundamentally in the property game, you do not wait and buy but you buy and wait,” he said. “We have seen examples in Sydney area where a house that was $100,000 back in 1985, is now worth $2 million. That is 2000% per cent growth in 34 years or 58% per annum flat growth.
“Buy the asset, never sell it, and enjoy the growth in capital gains in order to build your wealth or your equity. Today, you can hardly imagine Sydney’s median apartment price will triple in a few decades, and likewise, people 25 years ago, could never expect the median unit price would be $753,304 today.”
If you are a property investor looking to snap up well-priced investment property in Sydney, then where should you be looking? The fundamentals of property investment would suggest central, well-connected developments. Luxury apartments in Sydney’s CBD, Waterloo and Green Square are proving popular with investors, as are highly accessible areas such as Parramatta and the revitalised Eastlakes. With interest rates at their lowest ever and the market picking up pace, now could be the perfect opportunity to secure your next portfolio addition.