Property commentators regard Sydney as one of the best places to invest. It has long been characterised by high demand and limited supply—ideal conditions for capital and rental growth.
A modern, globalised city, Sydney is the capital of Australia's leading business state, New South Wales, and is regarded as the financial hub of the Asia-Pacific.
Sydney has a diverse population of 4.4 million (Australian Bureau of Statistics, June 2009) and is predicted to increase rapidly in the future.
The city attracts half of all international visitors to Australia and more than two-thirds of international business travellers.
Sydney's well-educated, multilingual workforce underpins its international reputation for innovation and enterprise.
The popularity of this city is demonstrated by its dense population and limited property supply. These market characteristics are why many commentators recognise the Sydney property market as the ultimate investment opportunity.
Click here to view Defence Housing Australia's (DHA's) investment properties listed for sale in Sydney.
Australia's most sought after property market
Experts agree that Sydney's large population and small useable geographical area will continue to drive prices higher into the future.
'Demand for housing exceeds supply and many anticipate that this will worsen,' Prosper Group Director, Chris White, says.
'The Sydney Metropolitan Strategy indicates that Sydney needs to house an extra 1.1 million people in the next 25 years and that it remains the most preferred destination for 146,000 migrants every year,' said Mr White.
Director of Metropole Buyers Agency Sydney, Pino Tedesco, says the current economic environment has seen a further stall in the supply of housing.
'It's unlikely that we will see an influx of new construction in the near future.
'The upside of the decrease in new dwelling approvals is that more demand is placed on the existing supply, and will therefore buoy the Sydney market for years to come.'
Rental growth good news for investors
Colliers International Residential Research Director, Jon Rivera, says that while chronically low levels of affordability have pushed many people out of the Sydney market, they have actually propelled investors back into the market.
He explains, 'If fewer people are able to afford buying real estate, it means more people remain in the rental market. This is one of the reasons why rental properties are experiencing such fierce competition.'
Residex Chief Executive Officer, John Edwards, says over the next decade investors are set to benefit from these conditions.
'Demand will be high given the shortages particularly in Sydney. It is our view that this city will see the highest rental increases.'
Defence has an extensive presence in Sydney including HMAS Kuttabul, HMAS Penguin in Balmoral, HMAS Waterhen in Waverton, HMAS Watson in Watson's Bay, Victoria Barracks and Randwick Barracks.
Defence Housing Australia (DHA) currently manages more than 3,350 properties in Sydney; this is the highest proportion of properties that DHA manages in Australia.
Click here to view DHA investment properties listed for sale in Sydney.
Click here to view all DHA investment properties listed for sale.
'Buyers watch Sydney closely', Your Investment Property, September 2009.
'The Insider' e-newsletter, Loan Market Group, October 2009.
'The Residex Report NSW and ACT', Quarter ending September 2009.
'Designing for diversity: the multicultural city', Department of Immigration and Citizenship.
'Sydney: a global city for the world of business', NSW Government.
'Welcome to Sydney', Defence Community Organisation.
'Sydney metropolitan strategy', December 2005.
The above information is supplied by Defence Housing Australia.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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