Hot Property Area – Inner West and Paramatta
The ‘Informer’ is an Ark total Wealth initiative, developed to help individuals identify and understand the current opportunities that exist in investment markets. This initiative forms part of our commitment to provide innovative solutions and advice to clients, with the aim of creating, managing and protecting wealth.
This edition will focus again on the re-emergence of investment property narrowing in on two areas that we believe possess great fundamentals for strong property growth.
The Inner West
The Inner West property market has performed strongly over the last year with medium house prices increasing by more than 10%1. This trend is expected to continue, despite the rising interest rate environment for the following reasons:
Supply Shortages – Within Sydney and especially the Inner West there is a chronic undersupply of new dwellings and rental properties. The lack of new dwellings will continue to push rental yields higher, which in turn lowers the cost to hold investment property. Over the longer term, the higher yields will help push property prices higher.
Parramatta is situated 24kms west of the Sydney CBD and it is Australia’s third largest economy behind Sydney and Melbourne2.
The Parramatta property market, and the surrounding areas of Westmead, Merrylands and Granville are well positioned for capital growth over the coming years for the following reasons:
Infrastructure – It is estimated that $3.8 billion is being spent on projects such as the transport link, Westfield’s Parramatta, Westmead hospital and the Justice Precinct. This combined with the Civic Redevelopment will increase the population growth significantly over the coming years which will put more stress on an already under supplied rental property market.
Stay tuned for more research on how to select the right investment property for you.
2Parramatta City Council
*Research has been provided by Pulse Property Research 2009.
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