Parts of the Sydney property market should be approached with caution due to rapidly rising prices, according to a property research and investment firm.
In its property market outlook for 2014, Aviate Group said the Sydney inner city market is currently recording unsustainable prices in certain areas.
“Aviate will maintain a cautious approach in Sydney in the short term, given the unprecedented prices for one and two bedroom apartments being achieved in the key inner city markets, including those preferred by tenants employed in a professional capacity,” Aviate managing director Neil Smoli said.
Portions of the Sydney market are too hot and investors should ensure they aren’t paying too much in 2014, according to Mr Smoli.
Brisbane on the other hand will continue to offer investors more value for money in the New Year, the report claimed.
“The fundamentals remain attractive for select inner city markets and Brisbane still enjoys a lower median price than the other metropolitan markets in Australia,” Mr Smoli said in the report.
“Add to this comparative affordability the fact that average incomes in Queensland surpassed those of New South Wales and Victoria over the course of 2013, according to the ABS, as well as the weight of infrastructure commitments in Brisbane, including the second runway planned at Brisbane airport.”
Mr Smoli identified South Brisbane, West End, Dutton Park in Brisbane’s inner south, and the suburbs of Lutwyche, Stafford, and Nundah in the city’s inner north as providing attractive opportunities for investors.