Sydney revival forecast by magazine
Sydney’s property market is on the cusp of a significant recovery, according to BRW magazine.
The magazine quotes information from Colliers International, Mortgage Choice, BIS Shrapnel and Property Insights to support the argument that Sydney is coming back to favour with property investors.
An investor sentiment survey from Colliers International found 45% believed Sydney to be the best place to invest in real estate in the next 12 months.
A Mortgage Choice survey of investor preferences ranked Sydney locations between 15km and 50km of the CBD as 2nd most popular choice in the nation, followed by locations within 15km of the Sydney CBD (Melbourne ranked higher in this survey).
Property Insights’ Development Intelligence report says flat house prices and a sharp fall in interest rates has boosted affordability 35% over the nine months to March 2009. It says affordability, along with high migration and a shortage of housing, will push up Sydney house prices and rents.
Economic forecaster BIS Shrapnel has also predicted a recovery in the Sydney market, BRW says, with affordability “at its best level in a decade and dwelling construction at 50-year lows, prompting high rents and low vacancy rates”. It expects these factors to draw investors back into the Sydney residential market.
BIS Shrapnel has predicted that Sydney dwelling prices will rise 19% over the next three years (which equates to around 6% per year on average up to June 2012).
