The NSW excerpt from the 2016 January Market Report on Your Investment Property Mag states that ‘there’s no doubt that Sydney has been the capital growth performer over the last two years’ having undergone an 'economic renaissance' of runaway capital growth.
Tim Lawless, director of CoreLogic RP Data, reports that Sydney property prices have increased by 49.6 per cent since 2012, a boom by anyone’s measure.
If investors are harbouring concerns about buying in Sydney fearing this rapid rate of growth may wane in due course, AMP’s Shane Oliver reassures buyers that ‘Sydney is resilient; it’s set to remain as the strongest performing state economically, with strong immigration flows’ and assuming interest rates remain low.
So if one of your New Year’s resolutions is to get into the property market or to add to your investment portfolio, what better place to consider than the nation’s most rapidly growing property market of 2015; Sydney.
Depending on your personal investment strategy we’ve divided up our top Sydney suburbs worth considering based on:
- areas with solid rental yields for investors looking for income producing properties,
- suburbs with high capital growth rates for investors looking for strong prospects for price growth in the long-term
- and affordability, for investors looking to snap up a bargain in up and coming neighbourhoods.
The statistics presented, including median house price (MHP), average annual capital growth rate (CGR) and rental yield (RY), are from CoreLogic RP data accessible via Your Investment Property's Suburb Profile Reports.
10 hot Sydney real estate markets to add to your 2016 watch list of investment prospects:
Solid rental yield
Stats: $971,000 MHP, 7.29% CGR and 3.37% RY.
Drawcards: Close to Newtown and Sydney University, 10km from the CBD and high rental demand, great for couples, singles and families.
Stats: $1.34 million MHP, 7.23% CGR and 3.29% RY.
Drawcards: Family-friendly, great schools, public transport (buses), close to the beach, parks and rec, a safe and peaceful area.
High capital growth
Stats: $1.09 million MHP, 10.72% CGR and 2.34% RY.
Drawcards: high rental demand, 24km from the CBD, young up and coming area, residents have an average age of 30, great for sport fans, shopping, cinemas, farmers' market, cafes, restaurants and public transport.
Stats: $1.8 million MHP, 9.71% CGR and 2.31% RY.
Drawcards: Soon to have light rail services, close to UNSW and the beach, good medical facilities, suited to young professionals and families.
Stats: $1.3 million MHP, 8.85% CGR and 2.88% RY.
Drawcards: 10km from the CBD, great public transport (light rail, train and buses), close to Merrickville and Cooks River, family-friendly, popular with young singles, good shopping, schools, medical facilities, restaurants and cafe culture.
Stats: $1.129 million MHP, 9.41% CGR and 2.76% RY.
Drawcards: Approx 30km from CBD, good for parks and rec, peaceful and safe, good area for retirees, professionals, singles, families and students.
Stats: $1.152 million MHP, 8.24% CGR and 2.71% RY.
Drawcards: 26km from the CBD, good proximity to schools, public transport, family-friendly, also good for professionals, singles and retirees.
Stats: $484,000 MHP, 5.81% CGR and 4.19% RY.
Drawcards: Gyms, fitness, parks, shopping, childcare, public transport, medical facilities, suited to families, professionals, singles, students and retirees.
Stats: $471,000 MHP, 2.57% CGR and NA RY.
Drawcards: Public transport (train station), peaceful and quiet area, close to the UWS campus, Nepean Hospital, good shopping options, schools, suited to students, families and professionals.
Stats: $590,000 median unit price, 5.06% CGR and 4.41% RY.
Drawcards: 3km to CBD, great waterfront views, cafe culture, nightlife, suited to professionals, singles and students, good public transport (train, bus and ferry access).
Do you have your eye on any other up and coming areas in Sydney for investment? Please share them below.
Happy house hunting!
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