1. There is currently 34% less stock on the market, compared to April last year.
Competition is high amongst buyers and the auction clearance rate has been over 84% for most of this year.
2. Both Houses & Units are yielding over 5%
It is no secret that Investors have been driving the market in South Eastern Sydney and the current yield in Alexandria is looking very attractive to investors.
3. The vacancy rate is 1.5%
In addition to strong yields, investors have even more great news – the vacancy rate in April was only 1.5%. With 3% considered neutral, the Alexandria market has a fair way to go before there will be pressure to reduce rent prices.
4. Green Square
Despite all the hype around Green Square, there will be approximately 50,000 new people moving into the area which will put pressure on the infrastructure, especially roads and transport. For some long term residents, the hustle and bustle of Green Square’s urbanization will have no appeal.
5. Record low interest rates
Interest rates are at an all time low and cash returns for investors currently offer only half the yield of property. There are more whispers that rates will go even lower and Banks are being forced by the government regulator to reduce their investment lending. If there is less money available for investors, then there will be fewer buyers in the market which may lead to lower prices in the area.