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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
    The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years...
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Sydney property and property investment news | Real Estate Blog – Niche Portfolio

Monday, January 20, 2014

The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years.

Sydney property values are on the rise, with house prices for 2013 having demonstrated a hefty 15 per cent increase, and unit prices up a favourable 11.6 per cent.

Sydney: leading property growth

Extremely low interest rates are another major factor in boosting the appeal of investment properties, with residential property seeing increased interest from investors. 

Experts have reported that low cash rates have been one of the driving factors behind the increase – especially in the second half of the year. 

Although the country’s major cities all showed positive growth over the year, Sydney, along with Perth, Melbourne and to a lesser degree Brisbane, was leading the charge.

Who’s buying in Sydney?

With prices on the rise, interest rates low, and cash rates stable, real estate experts note that it’s important to keep a cool head when purchasing an investment property – and not to overbid at an auction. 

Meanwhile, investors are making significant inroads into the residential sector, with some estimates suggesting that investors may come to comprise up to 40 per cent of home loans across the country – a significant increase on the usual 20 or 30 per cent.

First-home buyers are striving to get into the market before they’re priced out by booming house prices, and are making the most of low interest rates to obtain that all important foothold in the Sydney marketplace.

Real estate experts agree that there are two key buying types driving the growth: investment property owners and first-home buyers.

A trend towards renovating and refurbishing

This only emphasises the importance of taking a long-term approach towards property appreciation, and with prices expected to increase again over the next year, it’s a solid approach to take.

The increased prices for traditional investment and rental properties mean that some would-be buyers are sitting tight on their properties and looking towards renovations, extensions and possibly even rebuilding from scratch.

Sydney: avoiding the property bubble

All in all, it’s good news: with rental properties in high demand, and the market in a solid position, investors will continue to see good yields on their properties.

Experts note, however, that the large property value increases seen in 2013 are unlikely to continue to the same extent into 2014, with the market likely to moderate somewhat, avoiding a property bubble.