Minto, Raby and Claremont strong players in Sydney

The-right-policy-direction-is-necessary-to-alleviate-housing-prices-in-Sydney-says-the-HIA_157_65918_0_14099646_300Dwelling investment spending is slowly picking up, according to a report from Residex released this month.

The State Market Report for New South Wales during the December quarter highlights strengths in the property market as well as weaknesses. Many Sydney suburbs made it to the list of top-performing suburbs in the state.

The diversity of the New South Wales economy is one of its benefits. This is particularly pertinent given the slow-down in mining activity, which could affect less-diversified economies in a more drastic manner.

“Investors hold the key to the future growth in Sydney. They should be buying with position and cost in mind and providing rental arrangements that are for relatively short terms so they can ride the wave of increasing rent,” suggested Residex.

The official cash rate is expected to remain stable for some time, according to an April 1 release from the Reserve Bank of Australia. This will aid investment opportunities and help current investors manage their finance.

Rental yields for houses and units

Sydney properties boasted a median value of $642,000 at December 31 2013, according to Residex. Values have since climbed to $771,000.

During 2013’s final quarter, Sydney houses had 4.05 per cent capital growth. Units gunned ahead of this figure, with capital growth of 4.4 per cent.

Rental yields for houses were 4.02 per cent during the December quarter, while unit yields were 5.03 per cent. If investors “hold the key” for growth in Sydney’s property market, as Residex suggests, they may wish to turn their attention to units, given the higher rental yields.

Residex also highlighted the best-performing suburbs in the capital, by Value Quartile. Minto, Macquarie Fields, Kearns, Reaby and Claremont all featured.

During the final quarter of 2013, they exhibited quarterly growth ranging between 7.47 per cent (Claremont) and 9.55 per cent (Minto).

While Minto had the highest quarterly growth, it was Claremont that picked up the prize for the best year-on-year growth, with a figure of 17.43 per cent, compared to 16.90 per cent for Minto.

Minto had strong rental yields during the December quarter (5.74 per cent), followed by Raby (5.64 per cent), Kearns (5.63 per cent), Claremont (5.58 per cent) and Macquarie Fields (5.44 per cent).

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