Most activity for middle of the range
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.
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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.
