APM: Sydney real estate market expected to remain strong during 2014

70Sydney experienced some fantastic growth over the last year, with the latest report from the Australian Property Monitors (APM) highlighting the potential for continued degrees of development continuing well into the future.

In fact, the New South Wales property was the standout performer among the capital city markets in 2013. Record numbers of investors entering the market helped to propel the city into the top national position, while the median price within the area increased.

This confidence and enthusiasm for the real estate market is expected to make a marked return in 2014, with mid-price range inner and middle ring suburban properties expected to remain hot products for purchasing.

The prediction for the state capital is a further 5 to 7 per cent increase in the median house prices across the city during 2014, highlighting the continued rise in market strength for the metropolitan hub of New South Wales.

In December, the auction clearance rate was averaged at 70 per cent after experiencing rises into the high 80s during the last six months of the year. This is higher than the long term average of 62 per cent, illustrating the increasing enthusiasm and demand for Sydney property among buyers.

Low interest rates have been highlighted as one of the main reasons for the strong year in real estate nationwide, and this is true in Sydney as well. Acting as a catalyst for buyer demand, the financial situation in many cities allowed a larger uptake of real estate across the nation.

Furthermore, local economic development and the uptake of infrastructure projects has also been pointed out as a major contributing factor to the overall growth of the state’s real estate industry, with the expected population boom placing pressure on existing facilities and services.

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