The CBD: where everyone wants to be.
Thursday 14 Apr 2016
So apparently the rental market is stronger than expected. I could have told you that. Our team continue to see strong demand for apartments in the CBD and the inner city suburbs. It seems those predicting doom as a result of the extensive developer activity in the city were getting a little ahead of themselves.
The latest data released last week shows average Sydney rents increasing by $20 and Sydney apartment year-on-year growth sitting at 4%.
That is great news for investors and we are seeing corresponding strong interest from buyers. The tightening of lending laws has certainly impacted the number of investors we are seeing coming through because financing investor properties is now harder, but those who are coming through the door are eager and ready to buy.
I know I have said it repeatedly over recent months but the huge demand for property is the direct result of the lack of listings across the city. Buyers want to buy, but more than I have seen in a very long time, we are finding owners not wanting to sell.
So for renters and buyers the CBD is where they want to be.
It is creating a perfect storm of rental and buyer demand that is keeping our central Sydney Property Management and Sales team on their toes managing extraordinary levels of client enquiries.
So contrary what some are expecting I think it means prospects for the CBD market into the future look pretty exciting. Yes, there are significant numbers of new apartments coming online as new buildings open up in the coming years, but at the same time we are seeing increasing interest in the CBD as a vibrant community and location to live.