Property investment opportunities are ripe in Sydney's central business district unit market, according to the latest report from PRDnationwide.
The first half of the year was a fantastic time for units in the CBD, with the region recording steady market activity over the 18 months leading up to April 2013, which recorded 385 transactions alone.
The sale of new apartments over the six months from October to April lifted the median price for the units in the CBD to a huge $692,000.
This market success could be fantastic news for anyone looking into taking out an investment home loan and investing in the New South Wales capital city.
A mixture of local and overseas investors dominates the area, with a strong demand for one and two bedroom units driving the market.
It was found that overseas investors using the apartment as a home for children attending university also used the unit as a stepping stone into further residential and commercial investment.
The positive outlook and increased investment rates in the city are only expected to improve with the cash rate reaching an all-time low and confidence in the property market returning.
The median rental for one bedroom apartments rests at $600 per week, while two bedroom apartments experienced a slightly higher median price of $800 per week.
Furthermore, the popularity of the area for investment is starting to be recognised, with investment home loan demand increasing by 13 per cent over the 12 months ending April 2013.
Finally, the average holding period for units in Sydney's CBD was found to be 6.5 years, with an annual appreciation of 3.1 per cent, which could be fantastic news for any potential investors in the area.
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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.