Properties valued in the middle price brackets attract the most demand across New South Wales, according to CBRE.
High-end properties are still under pressure, said CBRE associate director, global research and consulting, Sam Reilly, however it is in the middle end and, occasionally, lower-end properties where buyer enquiry is most significant.
This enquiry has dropped off since the end of the first home owners stamp duty exemption, Mr Reilly said, yet properties in the Eastern Suburbs of values under $500,000 are still under demand.
CBRE senior director, NSW residential mortgage valuations, Ted Hoskin, said that a slight drop had actually been seen, “for both houses and units between $500,000 and $1 million there has been a slight decrease in buyer demand, with agents reporting conditions have decreased from mid 2011.”
Within Sydney’s CBD, units priced below the $500,000 mark showed solid demand, with those up to the $1 million performing weakly. In the north-west and western suburbs, steady interest was evident in the $400,000 to $650,000 price bracket.
The south-west market from $400,000 to $500,000 is also heating up, Mr Reilly said.
“Reasonably strong rental returns have maintained a consistent level of investor interest in the area, especially with the fall in interest from first home buyers,” he said.
Pressure in the $500,000 price bracket has also been seen in Wollongong and the Illawarra areas, as well as the Sutherland shire.