Market Report - News South Wales (July, 2007)

By

After years of stunted growth and low returns, the NSW property market appears to be on the verge of a recovery – largely due to low vacancy rates and increasing rents.

Real Estate Institute of NSW (REINSW) president Cristine Castle says that while we’re not experiencing an increase of interest “to previous levels”, investors are finally stepping back into the Sydney market. “We’ve noted a lot of activity and extra customers in the marketplace,” Castle says. “Certainly, the increase in rents has brought investors back.”

Over the last quarter, Residex reported a capital growth increase of 2.3% in Sydney, up from 1.5% in the previous quarter. In regional NSW, growth increased from 0.97% to 1.35% over the same period.

With an average house price of $548,500, Sydney maintains the highest median property value in Australia. The gradually increasing capital growth, coupled with increasing yields, is strengthening the city’s appeal with investors. “We do believe that Sydney represents value,” Castle says. “Sydney is a very stable market, and we don’t have anywhere to fall.”

Although growth is slower in country NSW, the average property price sits at a healthy $309,000, with a median rental return of $245 a week, or 4.14%. “The drought affected areas of regional NSW are still finding it difficult, and the water is an issue,” says Castle. “But of course, there are [regional] areas that don’t have some of those issues, and have good regional centres and infrastructure – they’re as popular as ever.”

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : newcastle , lockridge , chermside , tuart hill , reservoir

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here