Currently there seems no end to the historically low interest rates as the Reserve Bank again left the rates at 2.5 per cent. With confidence returning to the economy overall, investors and owner occupiers alike are again entering the property market. Unless buyers have a particular interest in an area, for example, to be close to family, most buyers are looking for the suburbs that have the highest potential for growth.
For people new to real estate in Sydney, picking the suburbs that are most likely to grow in value quickly is a bit like picking the winning lottery ticket. However, market experts use a range of techniques to identify the hot spots and a few of their secrets are passed on here.
Pick Suburbs with a Growing Population
First, the suburb must not be in decline, that is, i.e. people must be moving into the area and creating demand for accommodation. For that to happen the area must have good employment prospects or be handy to transport links that will get people to work. People who aren’t working are not in a position to pay high rents so for investors, this is a key statistic.
City or Sea—A – Always in Demand
Buyers should realise that the desire to live in areas close to the sea or the city has not changed and suburbs that fit these criteria will always be in demand. If they are older suburbs where there is little building activity, it is likely that housing will be in short supply. This is good for investors as it increases their returns but not so good advantageous for home buyers who are often priced out of this market.
Look Out for the Ugly Duckling Suburb
Another tip for buyers in Sydney that we also find effective is to look for undervalued suburbs that are surrounded by areas that are more expensive. In a rising market, potential buyers who are unable to purchase in these expensive areas but like the general location will look favourably at the “ugly duckling” next door. Before long, with a surge of buyers making improvements to their newly purchased properties, the beautiful swan will emerge, and along with it, property values can be expected to rise.
With all the beautiful real estate that is available in Sydney, we know we can help buyers find the right location and the right property to suit their needs. Whether it is for an investment or as their own residence, here at Prudential Real Estate we are busier than ever, helping our clients to find their dream property.
The market has begun to surge and prices will rise further as the supply of good properties dries up. We advise anyone thinking about buying property to take action now.
