2013’s fourth quarter: Local investment and surging property demand

23.8.13The final quarter of 2013 saw a boost in housing market sentiment, which was “supported by faster house price growth in all states,” according to the Quarterly Australian Residential Property Survey: Q4 2013.

The report was released by National Australia Bank (NAB) on February 13 and points to the strength of the NSW market, which has drawn much of its success from the hot activity in Sydney.

Strong results for investors

During the December quarter, “rental growth ticked up a little,” noted NAB in the report.

NSW was a leader in this sector, which is an outcome that will please investors of Sydney property.

Buyers looking to expand their Sydney property portfolio could glean tips from the report, which points out suburbs that are tipped for “above average capital growth over the next year”.

NSW suburbs predicted for this level of favourable growth were all from Sydney, highlighting the force of the capital’s contribution to overall property activity in the state.

Investors would be wise to watch out for properties that come up for sale in Surry Hills, Darlinghurst, Blacktown, Dulwich Hill, Liverpool, Marrickville, Penrith, Potts Point and Rosebery.

Interestingly, local investors were more significant than overseas buyers during the fourth quarter.

The report noted that overseas buyers were “less active” during this period, particularly in NSW, as well as Queensland.

However, foreign investment still accounted for 11 per cent of overall market activity.

With capital gains in Sydney climbing and steady demand for rental properties, it’s not difficult to see why both kinds of investors are getting involved in the city’s home and unit market.

Positive sentiment for Sydney

Sentiment was positive in Sydney and NSW had the best house price expectations and rental expectations results.

NAB questioned respondents about their feelings toward house price fluctuations, with a 2.3 per cent increase expected, which is predicted to increased to 3 per cent in over the next year.

Rental expectations came in at a 1.1 per cent increase for NSW, a figure that’s tipped to rise to 2.9 per cent in the next 12 months.

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