Property Market Information: The down-low on Sydney apartments

By the resi financial blog team, 10 June 2014

Sydney apartment market

The off-the-plan apartment market in the New South Wales capital is set for continued strength, according to a report from Bis Shrapnel. 

For those seeking competitive 5-year fixed-term mortgage rates, buying an apartment in the city could be a good bet. 

"Concerns about a downturn in prices in the Sydney property market in recent weeks may be premature, especially when it comes to the city's high density (apartments in buildings of four storeys and above) off-the-plan apartment market", explained Bis Shrapnel in a June 5 release. 

As part of its Apartments in Sydney Suburbs 2014 to 2019 report, the organisation highlighted that the high density market will continue to perform over the 2014-15 year, as well as into the 2015-16 year.

For first home buyers, second-time buyers or even investors, buying off-the-plan could be a wise move. On the back of the Reserve Bank of Australia's (RBA) decision to maintain the base interest rate at 2.5 per cent, obtaining the finance to do so is certainly within reach of many. With some of the best fixed interest rates currently within grasp for those with a sufficient deposit or existing equity in their own homes, purchasing in Sydney could be a possibility for numerous individuals.

"Off-the-plan sales will continue to remain strong over the next couple of years, underpinning further rises in new high density apartment construction," explained Bis Shrapnel.

"Although the market is not anticipated to end in an oversupply, vacancy rates are forecast to begin to ease and reduce pressure on prices by the time the Reserve Bank starts looking at tightening interest rate policy, with off-the-plan sales also expected to begin to slow over 2016."

Bis Shrapnel Senior Manager Angie Zigomanis noted that around $45 billion was borrowed in the year to March 2014 to buy residential property in New South Wales, highlighting the attractiveness of the state, not to mention its capital.

Categories: Home Loans