As rents jump $50 per week within four months, many property experts are tipping an investor-led recovery in Sydney
Residex reports that rents in Sydney have escalated from an average of $390 per week in March 2007 quarter to $440 per week in July 2007. Rents in regional centres across NSW have grown just $10 per week in the same period.
High yields coupled with low vacancy rates of less than 2%* are beginning to attract investors who have, until recently, largely ignored the harbour city.
“Sydney currently represents a very stable, solid market,” says Cristine Castle, President of REINSW.
Castle says that despite property values creeping upward, there is still a good supply of affordable housing available across Sydney, particularly units. She adds that the slow release of land and other factors mean there is pent up demand for property, which must be matched with supply.
“The message needs to get out that there are many buyers looking for property,” says Castle. “This includes investors who provide the rental accommodation that is in such short supply and such high demand.”
Chippendale is one suburb of Sydney that has experienced tremendous growth in the three months to July 2007, with property values growing by 7.03% to a median of $599,500, reports Residex. This brings the annual capital growth in the inner-west suburb in Sydney’s fringe to 10.38%.
