Value growth in Sydney great news for investors
December 13, 2013 / Written by Rich Harvey
Property investment in Sydney is paying off big, as recent data shows value growth in the area is leading the nation.
Figures from the RP Data-Rismark International Home Value Index illustrate that Sydney property values increased 12.5 per cent over the past 12 months.
Meanwhile, over the three month period ending in November, values increased 5.8 per cent in Sydney, higher than any other capital city.
This data is backed up by a report from the Real Estate Institute of Australia (REIA), which shows that median house prices in Sydney lead the nation.
"At $722,718, the Sydney median house price is the highest across the capital cities," said REIA President Peter Bushby.
"Hobart remains the lowest at $352,000, 37.4 per cent lower than the national weighted average. Compared to the same time last year, the weighted average median house price [for all capital cities] rose 9.5 per cent."
Those looking to buy investment property in Sydney should also be glad to know rents increased in the region, as well.
Over the September quarter, median house rent for three-bedroom houses rose in Sydney, according to the REIA. This offers property investors another reason to look into the area, as rising rents means more money added to monthly cashflow when leasing out properties to tenants.
Mr Bushby also said the REIA expects interest rates to remain low over the next year, which will add to value growth in the market, as more buyers are able to afford housing finance.
However, finding the right investment property comes down to more than just prices, making it a smart strategic move for buyers in the area to invest in a knowledgeable buyers agent in Sydney.