Investor appeal: Homes and units still flooding market
When it comes to buying investment property in Sydney, there are many factors that can influence where and when prices rise. From infrastructure announcements to interest rate fluctuations, numerous variables can see the value of property you own rise or fall.
One significant driver of house prices is the number of new dwelling approvals, and RP Data have crunched the numbers to determine how this has changed in recent months.
The figures for August show that home approvals rose 3 per cent in headline terms, and are 14.5 per cent higher than 12 months ago.
The total number of new homes approved across the month was 16,810. This indicates excellent levels of activity in the residential building sector, as the number of approvals is only 5 per cent below the last market peak.
Units and apartments drove the growth in green lighting for property in August, with approvals increasing by 9.2 per cent compared with a 1.4 per cent reduction in the figure for houses.
The total number of approvals for all constructions over the 12 months to August has reached a record high of 197,751, which is a 19.2 per cent increase.
Units, which RP Data notes are typically owned by investors, have continued to drive this strength. While units are less likely to move from approval to construction than houses, the sheer volume of approvals means there should be excellent investment opportunities for anyone looking at purchasing an apartment.
For more information on purchasing units and particularly how a buyers' agent can get your foot in the door early on these approved units, you can check out our comprehensive reports.
Surge in sales
The Housing Industry Association also looked at the sales of new homes across the nation, and found an encouraging 11.1 per cent increase for New South Wales during August.
Diwa Hopkins, economist for the HIA stated in an October 3 release that "current levels remain elevated by a historical standard, which is consistent with still healthy levels of new home building throughout 2014/15,"
She also stressed the importance of levels remaining high on a historical scale, despite the peak for home sales and building having already passed.
This strength in the new dwelling construction and sales markets continuing means conditions should remain healthy for investors.
With more property than ever before looking like it will become available on the market, it is imperative to have an expert guide you through the multitude of homes to the one that best suits your investment needs.
A buyers' agent will work with your interests and navigate the expansive property market, achieving the best results for the buyer.