Sydney or Melbourne - Choosing Where to Invest
Property investment is one lucrative area where many people are looking to invest in. If you are in Australia, you are probably wondering where to find investment properties for sale to invest. In the following sections, we give you the state of affairs as concerns the apartment property markets in Sydney and Melbourne, so that you can make a much more informed choice.
Sydney or Melbourne Choosing where to invest
Sydney forecasts
BIS Shrapnel projects that Sydney’s inner-city property market is set to remain undersupplied until the year 2019, and this is expected to push rent to the roofs and so deliver rising returns for property investors. The same report suggests that landlords from Melbourne will struggle as a result of oversupply of more apartments that have been newly built. This comes even as more apartments are expected to be finished in Sydney as opposed to Melbourne by 2016.
The latest phase of apartment construction in both cities began in 2009-10 period, and this was in the wake of rising rents as well as yields, and also following the economic improvement. However, the bulk of construction did happen in Melbourne, which explains the current oversupply. It is also forecasted that there will be shortage of 2500 apartments in 2014 in Sydney, which should appeal to investors who are looking for where to invest between Sydney and Melbourne.
However, the demand will steadily fall over the next couple of years with the shortfall reducing to 500 by the year 2017. After that, it will rise again and by 2019, there will be a shortfall of nearly 200 apartments.
At the moment, it is projected that approximately 2000 rental apartments will be completed by 2014 in inner Sydney. But this is just a drop in the ocean compared to rising rental demand in apartment market in inner Sydney. Therefore, even with the further high constructions expected in the course of the next two years, the deficiency of apartment units in inner city is not likely to go away any time soon.
What this means for you, the investor
The shortfall that Sydney currently sees means that prices of apartment properties are quite high. On the other hand rent charges are very high and this promises a quick return on investment for property investors. According to experts, the continuing tight rental market as well as rising rents will fuel investor demand and also lead to price growth in the next 2-3 years. This will be even better if income growth begins recovering and confidence returns.
Melbourne forecasts
Experts project that Melbourne will have a shortfall of 1,800 apartment units over the next 2 years. However, this is expected to more than halve after the pipeline projects are completed in the same period of time. By 2015, there will be an oversupply of apartments in the Melbourne property market.
What is fueling the oversupply in Melbourne is the apartment completion rate of 2,800 rental apartments from the period of 2013-2014 to 2015-20-16. This is as opposed to a completion rate of 1,800 apartments in 2011-2012. Also, in the past decade, the average completion rate has been 1,600 against a tenant demand of 1,500 apartments per year.
The Verdict
Due to the current oversupply in Melbourne, apartment prices are considerably lower than in Sydney. However, it does not necessarily mean that it is the better option. Sydney offers a more prospective investment option, given that the rate of return is so high given the high rental rates.
Hopefully you have found this article helpful about list of investment properties for sale. Visit this site again for more information go to http://www.investmentproperty1.com.au
Sydney or Melbourne Choosing where to invest
Sydney forecasts
BIS Shrapnel projects that Sydney’s inner-city property market is set to remain undersupplied until the year 2019, and this is expected to push rent to the roofs and so deliver rising returns for property investors. The same report suggests that landlords from Melbourne will struggle as a result of oversupply of more apartments that have been newly built. This comes even as more apartments are expected to be finished in Sydney as opposed to Melbourne by 2016.
The latest phase of apartment construction in both cities began in 2009-10 period, and this was in the wake of rising rents as well as yields, and also following the economic improvement. However, the bulk of construction did happen in Melbourne, which explains the current oversupply. It is also forecasted that there will be shortage of 2500 apartments in 2014 in Sydney, which should appeal to investors who are looking for where to invest between Sydney and Melbourne.
However, the demand will steadily fall over the next couple of years with the shortfall reducing to 500 by the year 2017. After that, it will rise again and by 2019, there will be a shortfall of nearly 200 apartments.
At the moment, it is projected that approximately 2000 rental apartments will be completed by 2014 in inner Sydney. But this is just a drop in the ocean compared to rising rental demand in apartment market in inner Sydney. Therefore, even with the further high constructions expected in the course of the next two years, the deficiency of apartment units in inner city is not likely to go away any time soon.
What this means for you, the investor
The shortfall that Sydney currently sees means that prices of apartment properties are quite high. On the other hand rent charges are very high and this promises a quick return on investment for property investors. According to experts, the continuing tight rental market as well as rising rents will fuel investor demand and also lead to price growth in the next 2-3 years. This will be even better if income growth begins recovering and confidence returns.
Melbourne forecasts
Experts project that Melbourne will have a shortfall of 1,800 apartment units over the next 2 years. However, this is expected to more than halve after the pipeline projects are completed in the same period of time. By 2015, there will be an oversupply of apartments in the Melbourne property market.
What is fueling the oversupply in Melbourne is the apartment completion rate of 2,800 rental apartments from the period of 2013-2014 to 2015-20-16. This is as opposed to a completion rate of 1,800 apartments in 2011-2012. Also, in the past decade, the average completion rate has been 1,600 against a tenant demand of 1,500 apartments per year.
The Verdict
Due to the current oversupply in Melbourne, apartment prices are considerably lower than in Sydney. However, it does not necessarily mean that it is the better option. Sydney offers a more prospective investment option, given that the rate of return is so high given the high rental rates.
Hopefully you have found this article helpful about list of investment properties for sale. Visit this site again for more information go to http://www.investmentproperty1.com.au