Property prices are tipped for substantial growth over the remainder of 2012 in one capital city, according to a property agency.
Investors need to break into the Sydney property market now to make the most of capital growth that will start over the end of the year, Lifestyle Property Agency’s director, Carlie Ziri, told Smart Property Investment.
“With a three to five year investment plan, investors should enjoy capital growth if the property is in a desirable building and location,” Ms Ziri said, pointing to the innermost areas, from Darling Harbour to The Rocks, as attractive choices.
“Now is the ideal time for investors to purchase a Sydney city apartment. Barring any catastrophic economic events or devastating natural disasters like those that dominated the market in 2011, we are conservatively tipping that median property prices in Sydney will rise by around two to three per cent in 2012.”
Indicating the price bracket between $500,000 to $1,000,000 for the best returns and higher quality tenants, Ms Ziri said that the new Australian Bureau of Statistics (ABS) census data points to the attractiveness of this area, with rent increasing by 33.3 per cent (to $600) since 2006.
Current rental demand is at a peak for properties in the $500 to $1,200 per week bracket, and that there is currently a shortage of supply.
“With the city’s continued capital growth, fabulous rental yields and other tax benefits – an inner city apartment is a great long-term investment,” she said, tipping one to two bedroom units as the best investment choices.
Properties with views and parking are also in high demand, with facilities such as pools, gyms and meeting rooms tipped as having the ability to get the highest quality corporate tenants.
“Sydney is the 5th most desirable city to live in the world. Investing in the Sydney CBD is ideal as it has proven long-term capital growth, and rental demand will continue to be driven by local and international tenants who love living close to work, and in arm’s reach of the world’s best restaurants, shopping, entertainment and overall cosmopolitan vibe.”