Perfect Storm for Sydney Property Investors David July 3, 2014 Building Products, Home and land package, Home Inspiration, Investment, Promotion Lower interest rates have enticed more properties back onto the Sydney Real Estate market. Listings for rental properties have continued to rise from the March low point of 1.4%. According to the Real Estate Institute of New South Wales Vacancy Survey, demand for rentals rose 0.2 per cent to 1.9 per cent in the last month alone. Industry expert Sasha de Bilde, from Platinum Rea, suggested that property investors would be wise to look and think hard. Areas like Fairfield, Campbelltown, Blacktown and Liverpool have high rental demand, and their prices reflect that. Sydney’s highest vacancy areas cluster around suburbs within 20 km of the city centre. Property prices in these areas are often substantially lower. And yet the vacancy rates among them average only 2.5%. For property investors this is a good bet. The cheaper prices of dwellings close to the city are not reflected in vacancy rates. At 2.5% vacancy you’d have to be very unlucky to not find a tenant. The experts at Platinum Rea believed the rental market should only continue to heat up. There is still a lot of competition for good rentals because Sydney is still growing. New properties are entering the market, but they are barely keeping up with population growth. For first time property investors in Sydney it’s a perfect storm: Sustained low interest rates, easing of bank credit, strong demand for rentals, and quality old and new homes on the market. Senior Property Managers at Platinum Rea say that most rentals are on the market for less than two weeks. This is despite the increasing number of properties entering the market. Compared to other capital cities around the nation this is good news for investors and tenants alike. Platinum Rea have noticed that the largest interest from both groups is directed towards new large scale apartment projects. Such large numbers of units coming onto the market at one time should be having a larger impact on vacancies than they are. It’s estimated half of all big block units are being purchased with an eye to rent. And yet these units are being snapped up. With interest rates predicted to rise by the end of the year (or early next year) Platinum Rea property experts advise anyone considering entering the property market to do so now. Make the most of the low interest and high demand while it’s there. Share this:Click to share on TwitterClick to share on Google+Click to email this to a friendShare on Facebook Leave a Reply Cancel Reply Your email address will not be published. Name* Email* Website Comment Notify me of follow-up comments by email. Notify me of new posts by email.