Investors are now seeing endless potential in Sydney's property market again, according to a new study by Property Investment Professionals of Australia (PIPA).
While Brisbane remains the “apple of the eye” for many investors, Sydney managed to get its appeal back — the PIPA survey shows that interest in the city has risen, with 14% of investors considering it the state capital with the best investment prospects.
"The number of investors who now see Sydney as the state capital with the best investment prospects has increased significantly since last year. However, it is still lagging behind Brisbane and Melbourne," PIPA chairperson Peter Koulizos said.
Sydney has been showing signs of life in recent months, leading the overall market rebound. The results of the federal election, the relaxation of credit policies, and the low interest-rate environment helped boost its image amongst investors.
"There have been more and more buyers and investors active in Sydney," said STRAND Property Group director Michael Ossitt.
Citing figures from CoreLogic, Ossitt said the city's median dwelling price has become more palatable at $805,000, making it more affordable not just for investors but for many homebuyers looking to grab a slice of Sydney.
Furthermore, recent figures from SQM show that the number of listings in Sydney has fallen 20% in the year to September. Ossitt said this, as well as the rise in auction clearance rates and asking prices, seems to suggest that Sydney's housing market is heading into another upswing.
"It is still early days, of course, but strategic investors are making their move now," he said.
According to Ossitt, strong investor demand is present in the Northern Beaches, especially amongst homebuyers and investors who are aware of the recent price downturn in the area.
"They recognised that the price of such desirable real estate was not going to stay at that level for long, so they moved early to stake their claim," he said.