Is now a good time to buy property in NSW?
Anyone buying property for the first time will no doubt know that being aware of market conditions is crucial. This is especially important if you’re hoping to eventually sell your home on for a profit, or use it as an investment opportunity.
One of the country’s standout states over recent years has been New South Wales. Real estate in Sydney is in high demand and with the level of returns buyers expect to achieve, it’s not really surprising!
In recent weeks, the Australian Bureau of Statistics (ABS) revealed details of its March quarter Residential Property Price Index (RPPI). Sydney was identified as the strongest performer out of all the national capitals, registering a 3.1 per cent price increase compared to the previous three-month period. From a year earlier, prices are 13.1 per cent higher.
Increased supply of new homes in New South Wales
If you have your eye on a new property in the state, the chances are you won’t be disappointed. The Housing Industry Association’s (HIA) latest Housing Scorecard report named New South Wales as the number one performer in terms of residential construction.
“NSW continues to rate highly on indicators measuring levels of multi-unit dwelling construction, but it may be a surprise to some that NSW also rates very highly across indicators of detached house building,” revealed HIA Economist Geordan Murray.
However, first-time buyers may find this particular market difficult to enter, as the HIA discovered that lending to this group was particularly low. In fact, New South Wales was the third-weakest in terms of this indicator.
Supply of existing properties is on the rise
It’s not only new real estate that buyers have their pick of at the moment, as the latest figures also point to an increase in the availability of existing properties.
The June 2015 REINSW Vacancy Rate Survey revealed that many apartments had been released onto the market, which could prove lucrative for the nation’s investors. Inner city locations have already been popular for some years now, and it looks like this might be the case for a while longer.
If you’ve been thinking about investing in rental property, then now could be the time to do it. Tenants currently have their pick of various homes, but it’s unlikely that the market will stay stagnant for long.
No matter whether you’re a first-time buyer or a would-be investor, there are Ray White offices throughout New South Wales to help realise your property ownership ambitions.