Sydney property value could rise 5-10%

By the resi financial blog team, 06 January 2014

Sydney property value forecast

A new year might be the great time to jump on the best fixed interest rates and invest in Sydney real estate - particularly as one expert says that certain waterfront and inner-city communities in the New South Wales capital could increase in value by between five and ten per cent.

Figures from RP Data released earlier this month show that in Sydney, the median house price currently stands at $640,000 - the highest average for any of the capital cities, and the most expensive place to live in Australia.

Speaking to the Daily Telegraph as part of its New Year's real estate forecasts, John McGrath, chief executive of McGrath Estate Agents, anticipated that improvements to public transportation - including the new inner-east light rail service - will boost property values in communities like Kensington and Bella Vista.

Elsewhere, he noted that a number of foreign buyers from China are looking to capitalise on properties located near universities and institutions for higher learning.

If you are seeking waterfront property, he told the publication that the best value will likely be found at the tip of the Northern Beaches. Destinations like Palm Beach and Whale Beach have been oversold in recent years, he said, so there is a "12-month window" to find value in these areas.

According to RP Data, the value of the median house price in Sydney has increased by 12.5 per cent year-on-year and has risen by 5.8 per cent over the quarter ending November 2013.

This is much higher than the national capital city aggregate median dwelling price of $525,000, which represents an eight per cent lift compared with the previous year.

Categories: Property Investment