Why are investors flocking to property in 2022?
The property value has recently increased significantly, and the Australian market has seen a massive surge. Property investors focus on different factors to ensure they get the best deal, which plays an essential role in making buying property in Sydney easy.
Real estate agents are receiving significant queries from investors. When considering buying a property in Sydney or investing in one, you must consider various factors.
It is advisable to reach out to the best real estate consulting firms if you’re an investor.
Why are investors so interested in flocking to the property market?
With the real estate prices increasing, investors predict that there will be further chances of growth. Investing in property now can bring better returns later. Several factors listed below contribute to an investor’s investment interests.
There may be a rise in value
Buying property in Sydney now means there will be a rise in its prices later. The price growth was significantly lower in the previous years. The demand for property is increasing in the larger capital cities. Therefore, investors will be able to spot a wide range of opportunities to determine the short-term capital gains and how efficient they will be in the long run.
Apartments offer value
The pandemic and the post-pandemic time have led to greater inclination in interest towards apartments as they offer better value, and the premium on these are far better than in houses.
. Now, more people prefer apartments over individual houses.
This has created massive pressure in the rental market. Therefore, investors are flocking into this sector in search of affordable properties. Current investments can consequently prove highly efficient in the long run, thereby driving more profit for individuals.
Borders have reopened
During the pandemic, the borders were closed, and this wasn’t bringing enough opportunities to the investors. Therefore, the inner city market has dramatically dropped, especially for apartment rentals.
The closing of borders and universities led to people moving out of town. With virtual learning and remote working becoming a usual norm, most people moved out of the city, leading to a significant drop in property rates.
Things are trickling back to normal. With international and domestic borders opening, the real estate market has a significant rise in growth opportunities. The best real estate consulting firms further recommend that this might be the best time to invest in a property.
The concept of closer living has also increased. Working individuals and students are looking for properties to rent in the inner city or around their workplace or university. As a result, it brings significant benefits for investors in the inner metro cities.
There is a shortage of properties
As per the research by SQM, there is currently a shortage of rental properties. The study added that back in January 2022, the national rental vacancy rate dropped to 1.3%, and this dip is considered the lowest in the last sixteen years.
This shortage of vacancies across rental properties means people will be willing to pay more rent, making the prices significantly higher, whether monthly or weekly. The research states that considering the situation, the rents could rise up to 10%. This will eventually bring significant benefits to the investors, especially in terms of a better investment return through rentals.
Is 2022 the right time to invest in the Sydney market?
The property markets are going to crash. This will bring several opportunities for the investors looking to buying property in Sydney to get a better investment return. It is advisable to analyse the past market. The prices of properties across the Australian market have not seen a massive rise in the past few years.
While this may be a good opportunity for the house owners, it may not be suitable for house hunters. Furthermore, the media has a mixed message regarding what lies ahead.
. With the international borders opening up, Sydney remains the favourite destination among job seekers and students. Therefore, Sydney’s housing market will be expected to skyrocket in the coming years.
There are some property sectors in Sydney that may underperform. These include:
- Apartments in the high-rise towers
- Homes in the suburban new housing estates
- Off-the-plan apartments
Conclusion
When buying property in Sydney, consider the past trends. Sydney is a favourite destination among job seekers and students. Therefore, investing in a property there can help drive better investment returns. In 2022, several investors are flocking to the Sydney real estate market for the same reasons.
Working with the best real estate consulting firms, such as Quality Acre, can assist you in making the right choice. We will help you identify the areas that are likely to bring better returns. We are looking forward to guiding you on how to tap into the real estate Sydney market.
