Sydney's East is showing strong population growth through higher density.  Units now represent 56% of all properties which is up from 51% in 2001.  This area has the highest population density with 7,601 persons per square km.  It is an area that attracts young professionals in their 20s to 30s. 

With 44% of the inner Sydney population renting, strong population growth and rental prices increasing, the return on investments is improving making for pockets of good potential buying. 

We are nearing spring and the number of properties that are being listed is lower than normal.  I am referring to the inner suburbs of Sydney where, it seems people had factored in the interest rate hikes.  You would expect the interest rate increase would have impacted on the property market in a negative way.  It has not had a chance.

We have  a few factors at play -

The demand is increasing because of:

• Population Growth
• people being more lifestyle driven and wanting to be closer to amenities, cafes etc.

The supply of homes is decreasing because:

• People are nervous they will not be able to buy again as there are few homes on the market.
• People are in a wait and see pattern.

To buy a property now, you need to know how to source the property and how and when to negotiate the price - otherwise you could be looking for a long time.

Located just 2km from the city centre is this vibrant harbour side suburb that is perfect for investors and first homeowners alike.
According to Domain (SMH July 21st-22nd 07) “Even in a subdued market, Rushcutters Bay is a happening place. Properties in the suburb are spending less time on the market, prices have climbed and clearance rates at auctions are also up on the past year.”
Being located within close proximity of the city and next to Elizabeth Bay and Potts Point, it is only a short walking distance to the Kings Cross station, which is one stop to the city. The area is well located to transport, shopping facilities, parks, harbour, nightlife and cafes which makes it a desirable location to live and in turn a perfect location for investment.  “An area like Rushcutters Bay will always enjoy better long term capital growth than other areas simply because it is one of Sydney’s most well located suburbs.” According to Michael McNamara, APM, General Manager.
“In the six months to November, properties were taking 102 days to sell. By the end of May it was 60 days. Prices have edged up 32 percent from a median of $371 000 to $490 000 and auction clearance rates have risen from 65% to 75% for the same period, according to Australian Property Monitors.”

If you are a first home owner or an investor looking for property with good rental return and capital gains potential, don’t hesitate to contact Platinum Buyers Agents to assist with your property needs on 02 8003 7558 or by email on email@platinumbuyer.com.au

According to an article in the Property Investor Magazine (June07), “Sydney will lead the way as Australia’s capital city housing markets move on an upward trajectory over 2007 and 2008, a report from Advisor Edge predicts.”

In his National Property Sector Review, Advisor Edge head of property research Louis Christopher wrote that after a three year downturn there were increasing signs a housing recovery was under way on the East coast of Australia.

Christopher cited “the close historical correlation between asset prices and Australian money supply (M3) as evidence that house prices should climb this year and next.”

The article continues on to discuss the correlation between money and assets and the historical evidence of bubbles in house prices as a result. He says that as a result of the growth of money being at it strongest rate since the last recession that Sydney can expect to see house prices “climb by 10.5 per cent this year and a further 9 per cent next year citing improved affordability, improving interstate migration rates, comparative price levels with other cities and rising rents as the factors that show Sydney is due to turn things around.”