Money in the Bank
Properties with good growth potential and have strong appeal to renters are the hot items for investors now. Good investment now lies in properties that can attract good tenants, long leases, can rake in more income from rents, and are sale-able.
Popularly spotted areas for such properties are those which are in the perimeter of the central business district, termed as CBD. Places like Balmain, Rozelle, Drummoyne, Surry Hills, and Pyrmount are the most popular choices for investors.
Brian McInally, associate director of investment sales for Colliers International, has indicated the growth of sales in the previous months which has amounted to yields of 5.4 percent. He also mentioned that mixed-use assets or those properties that can be used for retail or residential purposes are of higher priority for investors.
While investors are on the lookout for properties near the borders of the CBD, couples are more interested in properties which are in the 8-kilometer radius of the city. They find the underdeveloped properties will offer them more chances to expand the floor space to increase the potential income and value.
Knight Frank’s national director, James Parry said that investors who are currently after value assets in the CBD will more likely get the best value. More and more value-asset properties are now available in the market because of the market’s good condition in the past three years.
Peter Krieg, the NSW director of commercial and industrial for Knight Frank, on the other hand, has stated that empty sites are more in demand in the residential market asset. These sites are very conducive for developing medium-density housing and are near the CBD.
Investors and developing companies continue to see a good growth potential in commercial and residential properties. They are expecting to see an increased number of these properties in the market in the years to come to meet the demands.
