Kamal Sehgal

SYDNEY REAL ESTATE - THE MOST EXPENSIVE OF ALL
AUSTRALIAN CAPITAL CITIES

WHEN IT COMES TO THE AUSTRALIAN HOUSING

MARKET IT IS SAFE TO SAY THAT IT HAS BEEN ONE OF

THE BEST INVESTMENTS FOR INTERNATIONAL

INVESTORS IN RECENT YEARS. THERE ARE SOME

IMPRESSIVE REAL ESTATE FIGURES COMING OUT OF

SYDNEY AND THE REASON IS DOWN TO THE FACT THAT
AUSTRALIA RECENTLY WENT THROUGH A HOUSING
BOOM. THE SITUATION HAS SLOWED DOWN SLIGHTLY
NOW BUT PRICES AND DEMAND FOR AUSTRALIAN
HOUSING, ESPECIALLY IN THE SYDNEY AREA HAS

REMAINED STRONG ACCORDING TO NEWS REPORTS IN

THE SYDNEY MORNING HERALD.

THE ASPECT OF THE AUSTRALIAN HOUSING MARKET

THAT IS OVERSHADOWING EVERYTHING ELSE AT THE

MOMENT HOWEVER IS THE RENTAL MARKET.
INCREASED MORTGAGE RATES MEANT LESS
INVESTMENT IN BUY-TO-LET, WHICH RESULTED IN LESS
AVAILABILITY AND PROPORTIONALLY HIGHER DEMAND,

RESULTING IN HIGHER RENTS AND SUBSEQUENTLY A

HIGHER COST OF LIVING. THIS DOESN'T HOWEVER

MEAN THAT PEOPLE HAVE STOPPED OR ARE GOING TO

STOP PURCHASING PROPERTY IN THE SYDNEY AREA,

ESPECIALLY AS INTEREST RATES ARE ON THE WAY

DOWN AGAIN.



EVEN THOUGH IN RECENT YEARS THE OVERALL
HOUSING MARKET IN AUSTRALIA, AND THE REST OF
THE WORLD, HAS EXPERIENCED SOME BLEAK TIMES;

THERE IS LITTLE DOUBT THAT IT HAS A STRONG

FUTURE. THIS IS BECAUSE PEOPLE WILL ALWAYS NEED
SOMEWHERE TO LIVE AND SYDNEY, AS I HAVE
PREVIOUSLY MENTIONED, IS ONE OF THE MOST IN
DEMAND AREAS WHEN IT COMES TO THE AUSTRALIAN
REAL ESTATE MARKET.

THE REAL ESTATE WITHIN SYDNEY IS DIVERSE AND
THE POPULATION IS QUITE SPREAD OUT, EVEN THOUGH

IT IS ONE OF THE MOST DENSELY POPULATED CITIES IN

AUSTRALIA. IT IS AN EXTREMELY DESIRABLE PLACE

FOR PEOPLE TO PURCHASE PROPERTY AND CURRENTLY

SOME OF THE MOST POPULAR BUYING OPPORTUNITIES

IN THE PROPERTY MARKET REVOLVE AROUND INNER

CITY SYDNEY APARTMENTS. THIS IS BECAUSE THESE

PROPERTIES ARE CONSIDERED TO BE SIGNIFICANTLY

UNDERVALUED WHEN THEY ARE COMPARED TO THE

SURROUNDING SUBURBS.

EVEN THOUGH SYDNEY REAL ESTATE IS NOW

CONSIDERED TO BE THE MOST EXPENSIVE OF ALL THE

AUSTRALIAN CAPITAL CITIES, ACCORDING TO A 2008
GLOBAL PROPERTY GUIDE REPORT; YOU CAN STILL
PICK UP A COMPARATIVE BARGAIN, SUCH AS THE INNER
CITY APARTMENTS MENTIONED ABOVE.

PROPERTY VALUES IN THE SYDNEY AREA HAVE SHOWN

LITTLE IN THE WAY OF GROWTH OVER THE PAST FIVE

YEARS BUT THE ONE THING SYDNEY IS

DEMONSTRATING IS SOME FANTASTIC BUYING

OPPORTUNITIES. THIS IS TRUE WHETHER YOU ARE A
FIRST TIME BUYER OR AN EXPERIENCED BUYER.