New South Wales top pick of investment hotspots

New-builds-are-the-pick-of-the-crop-for-investors-_157_6004859_0_14102411_300New South Wales has cemented its position at the top of the property ladder for another year, proving itself an investment stronghold and a bastion for new home building. CoreLogic RP Data research shows the state accounted for the value majority of investor commitments in December last year, with stellar strength in construction and ideal lending conditions expected to boost residential investment activity.

Astronomical growth in the value of housing loans places New South Wales in a strong position as 2015 rolls on. While all states and territories recorded higher lending value over 2014, New South Wales showed the greatest rise, swelling 34.1 per cent in the 12 months to December. In fact, NSW held the largest proportion of all investors loans in the country in December, making up a staggering 45.3 per cent.

David Bare, Housing Industry Association Executive Director for New South Wales, said the state’s housing market is set for another outstanding year. New home building is surging across the country and it looks like New South Wales investors have a particular taste for construction.

“New home building has become a crucial engine of growth for the NSW economy, and its importance is set to increase further over the next 12 months,” Mr Bare said.

CoreLogic investment figures confirm this. While investment was mostly geared towards established houses nationwide, the value of loans for new houses soared to $1 billion – the highest peak since December 2002. There are readily more established houses in the pipeline than new builds, but investors will surely be snapping up supply where they can. HIA predicts 50,000 additional new builds for NSW in 2015, which will likely spark further investor interest in the state.

Not only will new builds satisfy investor cravings, but buyers will likely relish a fresh supply. Mr Bare noted that a sustained supply of new homes will ideally improve affordability in NSW, which will provide some welcome price relief for investors and buyers alike.

With 2015 looking like yet another superb year for the New South Wales housing market, get in touch with your local real estate agent for more information about buying a home or investment property.

Leave a Reply

Your email address will not be published. Required fields are marked *