Sydney’s best years are ahead

Sydney’s best years are ahead

Posted on Friday, June 15 2012 at 2:56 PM

Have you ever dreamed of owning a pad close to the Harbour Bridge and Opera House?

Perhaps you’d
prefer something a little closer to one of the world’s most beautiful beaches,
at Bondi in the east? Or what about the more affordable west, where strong
yields will help you pay for the property? Wherever you decide to buy in
Sydney, good things are expected from Australia’s leading city.

Trend forecaster
for KPMG, Bernard Salt, says Sydney has a solid outlook.

“Put simply,
Sydney is a big global city with critical mass in key infrastructure as well as
corporate depth. Sydney’s best years lie ahead,” he says.

“Part of the
reason behind Sydney’s resurgence is resolution of state governance issues and
that simple fact that this city remains the Australian portal of the global
economy. Sydney has the most head offices and Australian offices of overseas

Salt adds Sydney
also attracts more people every year than Melbourne and has reduced interstate
migration since the global financial crisis (GFC).

“New lifestyles,
new ethnicities and new social behaviours are likely to drive demand for
well-positioned investment property, rather than lifestyle properties, in the
inner and even middle distance suburbs.”

WBP Property
Group NSW manager Chris Lackey agrees, adding the west seems to be doing better
than the north.

“Pittwater (in
the north) is a market that was hit hard by the GFC and has never really
recovered, representing a poor or risky investment. The inner-western market is
very resilient. To be holding its ground in the current market is a very
positive sign for strong capital growth potential.”

Another positive
for Sydney is the doubling of the First Home Owners Grant for new homes,
although it comes at the expense of established homes, Lackey says.

“This is good
news for first homebuyers who have previously found the new home segment
unaffordable in Sydney. It will also stimulate the housing and construction
sector, which forms such a critical part of the state’s economy.”

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