Arnold
CibbuanoChanging Climate in NSW Property Market
September 18th 2006 00:32
According to the Sydney Morning Herald, only three years ago the top five property investor areas in NSW were;
1. Liverpool
2. Baulkham Hills
3. Wentworthville
4. Gosford
5. Edensor Park
Three years down the track and the situation has definitely changed. The property slump throughout the Eastern states of Australia have taken a particularly hard toll on NSW’s western and south western suburbs. The apartment market was particularly buoyant in these areas during the peak property time period. Now those apartments have decreased in value and investors are not making the returns once expected from these properties. An investigation commissioned by the SMH revealed that apartment prices had dropped on average by 12 per cent in Sydney’s south-west and an average of 10.4 per cent in the western suburbs. These figures compares median prices over the past two years.
The housing slump has not been exclusively hard hitting in the city fringe apartment market. Housing prices dropped by 86 per cent over the last financial year in Sydney’s south-west. The western suburbs suffered a whooping 66 per cent drop over the last financial year.
For those that are looking for long term gains, such huge price drops should signal bargain prices. In the long term, prices are bound to pick up. Considering that the Eastern seaboard real estate slump has greatly affected the city fringe suburbs the most, it seems reasonable that the greatest bargains and long term yields may result from investment in the outer suburbs rather than the inner suburbs.
1. Liverpool
2. Baulkham Hills
3. Wentworthville
4. Gosford
5. Edensor Park
Three years down the track and the situation has definitely changed. The property slump throughout the Eastern states of Australia have taken a particularly hard toll on NSW’s western and south western suburbs. The apartment market was particularly buoyant in these areas during the peak property time period. Now those apartments have decreased in value and investors are not making the returns once expected from these properties. An investigation commissioned by the SMH revealed that apartment prices had dropped on average by 12 per cent in Sydney’s south-west and an average of 10.4 per cent in the western suburbs. These figures compares median prices over the past two years.
The housing slump has not been exclusively hard hitting in the city fringe apartment market. Housing prices dropped by 86 per cent over the last financial year in Sydney’s south-west. The western suburbs suffered a whooping 66 per cent drop over the last financial year.
For those that are looking for long term gains, such huge price drops should signal bargain prices. In the long term, prices are bound to pick up. Considering that the Eastern seaboard real estate slump has greatly affected the city fringe suburbs the most, it seems reasonable that the greatest bargains and long term yields may result from investment in the outer suburbs rather than the inner suburbs.
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