March Property Market Review for NSW 2014

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Thank you to Therese O’Neill from Alphabroker, I wanted to share this months NSW Property Review.

The following information was also sourced from Herron Todd White March Property Report

The good news continues for NSW again this month…. See Highlights below of HTW’s opinion on the Sydney residential market.

  • Throughout Sydney, buyer demand for ‘trading up’ is mixed with local agents generally dividing buyers into three categories; those looking to meet their growing family needs and to position themselves in key areas close to quality schools, shopping and transport hubs; others who are more concerned with higher quality residences to suit their lifestyle; and some with the goal of renovating or refurbishing for future capital growth.
  • Within the inner east and CBD fringe, trade up markets are considered to be within the $700,000 to $1.2 million range.
  • Purchase options for this price point are varied, but are typically average to high quality 2- and 3-bedroom units, as well as basic to average 2- and 3-bedroom terrace dwellings and townhouses.
  • For units within the trade up market, 2013 saw strong  gains fuelled by strong rental yields combined with a scarcity of quality product.
  • We witnessed particularly high demand and premiums being achieved for ground floor units with patios or access to communal gardens and top floor units with roof terraces or with the opportunity to buy attic space from the stratum.
  • For dwellings, traditionally resilient suburbs of  Paddington, Darlinghurst and Surry Hills witnessed increased buyer activity throughout the year, seemingly snowballing as the year continued with properties selling well over the reserve becoming the norm.
  • The scarcity of available floor space within the eastern city and CBD fringe will see purchasers become increasingly savvy at identifying opportunities to squeeze every square metre with clever conversions and flexible footprints.
  • Capital growth in the trade up market looks set to continue throughout 2014, fuelled by continued spill over from investor activity at the lower price points, strong rental yields, low levels of quality stock and increased demand from stubborn buyers looking to stay within the iconic inner city suburbs.
  • While demand has remained relatively steady at high levels, the pace of growth will be ultimately dictated by how much stock comes onto the market throughout the year and how stakeholders react to any changes in interest rates and future borrowing conditions.

“If you find this information of value and would like me to keep you up to date with any events or information, please connect. Would be happy to welcome you to our community.”

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Jeff Suter

Managing Director at Dark Horse Financial
Jeff is a long term property investor and provides clients with both residential and commercial finance strategy for a living.

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