What the RBA Cash Rate means for new residential developments in Sydney
Earlier this week, The Reserve Bank announced the official cash rate is on hold at 0.1%, still sitting at a record low. The move initially came in November 2020, with the intent to boost Australia’s economic recovery in the wake of COVID-19. These record-low interest rates, as well as government grants provided over the course of last year, have contributed to a steady rise in property prices in the first quarter of 2021. According to CoreLogic Data, Sydney home values have increased by 3.7%.
As a result, we are experiencing a rise in new residential developments across Sydney, in suburbs ranging from Sydney’s south, east and west, to the Northern Beaches.
The potential of investing in the Northern Beaches during this time
Property purchasers and investors alike are seeking buying opportunities that not only meet profitability potential, but lifestyle suitability also. Take for instance Many Vale, home of our latest development, QUBE on Condamine Street. According to realestate.com.au’s latest insights, the median property price in Manly Vale over the last year has varied between $2,015,000 for houses and $808,500 for apartments. The rental market is no surprise, showing positive returns, with the average house rental being $993 per week and apartment rentals starting at $550 per week. Within five years, Manly Vale has a growth rate of 5.9% for houses and 2.2% for apartments.
“Housing credit growth to owner-occupiers has picked up, with strong demand from first-home buyers.” Governor Philip Lowe, Reserve Bank of Australia
What do people look for when buying a property?
- How well they suit their lifestyle, whether gearing towards a bustling city landscape or a relaxing beachside seascape
- Access to public transport including trains, buses and ferries, making daily commutes more convenient
- Property value and potential resale value
- Proximity to leisure, medical, shopping and dining precincts
- The quality of the property itself including fixtures, finishes and durability
- In a post-COVID era, properties with more natural light, larger living spaces and outdoor areas, home office spaces and more bedrooms
With April’s RBA announcement, it no doubt shines light on a booming property market for new residential developments in Sydney. Although the RBA’s role is not to directly target Australia’s property market, its decisions do have a ripple effect and influential take on consumer trends and purchasing habits. As a dynamic property development company, we at Cite Group understand how to best capitalise on property potential and maximise investment opportunities. To find out more about Joint Ventures, contact us.