Sydney is currently facing a huge (and increasing) shortage of new property. The population is increasing at its fastest rate for 200 years, Australia has record migration figures, the economy is doing quite well in spite of the financial downturn elsewhere, yet the cost of money for developers (as interest rates went up between 2003 and 2009) meant many stopped building.
Remember, in Australia, unlike Asia, Developers have to fund the full construction of new projects by themselves (they can't use purchasers money like they can in most Asian cities).
So what does this mean?
It's quite simple. Australia is facing its greatest ever housing shortage, and it's greatest ever population boom at the same time, the first time in history this has happened. This is causing rents, especially in the lower and middle range, to rise as occupancy rates reach their highest levels in decades, and as Sydney prices have been flat for the past 6 years, there simply has never been a more affordable or better time to invest in Sydney, if you can find something.
Expect to pay around AUD$9,000 - $9,800 a square metre in Sydney, and look for 2 bedroom apartments at least 80 sq metres to suit the Sydney market.
And the latest figures indicate that the influx of people flocking to the Harbour city show no signs of abating. The current 1.57% population growth is well above the 1.1% decade average growth pace. But even more importantly, the current growth rate is double the rate of growth over the past 4 years.
There remains a rental crisis for tenants. There are simply not enough rental properties for tenants at affordable prices. Occupancy rates in Sydney are at record highs, with little supply of new property on the horizon to alleviate this position.
According to the Real Estate Institute's latest report, saw Sydney's occupancy rate increase by 0.35% last quarter to stand at an incredible 98.8%!
In a recent report written for QBE LMI, economic forecaster BIS Shrapnel have forecast capital growth in Sydney around 20%, within the next three years.
Remember, in Australia, unlike Asia, Developers have to fund the full construction of new projects by themselves (they can't use purchasers money like they can in most Asian cities).
So what does this mean?
It's quite simple. Australia is facing its greatest ever housing shortage, and it's greatest ever population boom at the same time, the first time in history this has happened. This is causing rents, especially in the lower and middle range, to rise as occupancy rates reach their highest levels in decades, and as Sydney prices have been flat for the past 6 years, there simply has never been a more affordable or better time to invest in Sydney, if you can find something.
Expect to pay around AUD$9,000 - $9,800 a square metre in Sydney, and look for 2 bedroom apartments at least 80 sq metres to suit the Sydney market.
And the latest figures indicate that the influx of people flocking to the Harbour city show no signs of abating. The current 1.57% population growth is well above the 1.1% decade average growth pace. But even more importantly, the current growth rate is double the rate of growth over the past 4 years.
There remains a rental crisis for tenants. There are simply not enough rental properties for tenants at affordable prices. Occupancy rates in Sydney are at record highs, with little supply of new property on the horizon to alleviate this position.
According to the Real Estate Institute's latest report, saw Sydney's occupancy rate increase by 0.35% last quarter to stand at an incredible 98.8%!
In a recent report written for QBE LMI, economic forecaster BIS Shrapnel have forecast capital growth in Sydney around 20%, within the next three years.
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