New and most in-demand suburbs & developments in Sydney: Rent OR Buy?
In the news, papers and all over current articles, we all know that the property market has seen negative growth with Sydney, Perth, and Darwin being the most challenged.
Many people are hesitant to invest in property as they are afraid that the market can drop even further. Sydney has moved from being the second least affordable city in the world to now ranking third.
Mid-priced suburbs in Sydney are going to be affected most with more expensive and cheaper suburbs holding up decently. Due to the drop in prices, there has seen to be more activity in premium suburbs. During price booms, people tend to move to cheaper suburbs just so they can step foot into the market.
The drop in prices has made it more affordable for first home buyers who were struggling to enter the market during the boom and were anxious for their future due to the fast-moving market.
Not only have we seen a decline in the market, but there has been a change in the types of properties potential buyers are viewing. According to realestate.com, the ‘Northern Beaches and Inner East of Sydney are seeing the highest number of views per listing in Australia.’ This is because these premium suburbs are now seen as good value and a chance for buyers to get into the market, prompting developers in Sydney.
There have also been trends with the rental demand dropping, this is because investors do not want to be purchasing property that is going to be hard to lease, and one that may possibly fall in value.
It is also expected that there will be a supply increase for rental properties and this will continue throughout 2019. The increase in supply has made it harder for landlords and Sydney developers to attract potential tenants as renters now have an increased choice.
Rental prices have seen an increase over many years and it may not be such a bad thing that some of these new or existing residential developments in Sydney are now more affordable. It is currently a renter’s market, with prices being more cost-effective than ever. To highlight this, North Shore has seen some of the greatest falls in rent prices with a decrease of approximately $80 compared to a year ago, while apartments in the upper North Shore approximately $20 cheaper.
The Top 10 most in-demand Suburbs and developments in Sydney: existing and new residential developments
|1. Freshwater||1. Kirribilli|
|2. Dee Why||2. Fairlight|
|3. Mosman||3. Centennial Park|
|4. Paddington||4. Wollstonecraft|
|5. Winston Hills||5. Queenscliff|
|6. Manly||6. Freshwater|
|7. Newtown||7. Artarmon|
|8. Baulkham Hills||8. Macmahon’s Point|
|9. Surry Hills||9. Manly|
|10. Narraweena||10. Woolloomooloo|
People are now looking at renting rather than buying and this number is continuously increasing. However, there has been an increase in households that are looking to buy, ever since the market began to fall. Many people have speculated that this may not be a smart choice as people should wait until prices fall even further.
The difficult question arises. Is it best to rent or buy a new residential development in Sydney?
Analysts have discovered that even though house prices have decreased, they may continue to do so and it makes more sense for people to wait for better value. However, even though it may be better to rent than buy, there is a strong preference for owning to renting due to the lifestyle surrounding it. Calling a property your own comes with a range of benefits that many people prefer.
Ultimately, investing in new residential developments is not an easy decision. The decision of renting and buying all comes down to the financial situation that works best for the person. There are advantages and disadvantages to both. Renting provides people with flexibility as they can relocate from home to home according to the lease and change up their lifestyle until they are ready to buy. At the moment, this may provide better benefits until they find the right home for the right price.
With rental prices also dropping, it has become quite affordable to live in new residential developments in highly sought out areas. Many people may not be able to afford to buy a house in these locations, and would much rather rent.
Although the market in Sydney has seen some changes, it is important to understand the details before buying or renting a new residential development. Sydney has faced some difficulties over the past year. However, it still presents an abundance of opportunity.
Analysing market trends and undertaking research will help you make a decision.
At Cite Group, we focus on the development of new residential buildings and focus on quality made properties in some of the best locations in Sydney.
We understand our clients and deliver to their needs accordingly.
Keep up to date with us at citegroup.com.au