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Apartment glut threat to inner cities
Is this true for the Northern Beaches and Lower North Shore?
This is the headline from Saturday's Australian Financial Review, the article goes on state..
“New Inner-city apartments are flooding into the nation's capitals at up to three times the markets' ability to occupy them, prompting red-light warnings to investors. Hidden behind the national housing shortage which has forced house prices up by 10 per cent nationally is a glut of inner-city apartments which in some cities is already driving down rents. Even more supply is coming, with 41,400 high rise apartments approved last year, a 30 per cent rent increase on 2012”
My thoughts are this might be true for some parts of Sydney like Chatswood, Hurstville, Eastwood and the City, however there is still strong demand from young first time buyers downsizers and investors in our area. From 2007 until last year really there was minimal new development in the Manly area. Anything newly built in Manly is snapped up and a recent new development in Sydney Road Balgowlah sold prior to the building complexion. So I feel the combination of being close to shopping, cafes, easy public transport and the natural beauty of our area will keep interest from buyers, investors and tenants strong for the foreseeable future locally. Also there is only a limited amount of space for new developments which will keep demand strong.
Posted on Tuesday, 15 July 2014 by Website Administrator
Leasing
Surprisingly we have seen the demand for rental properties fall over Summer and with the fall in demand rental returns are lower than 6 months ago in all price ranges. This is especially true with a larger decrease in demand from tenants in the executive property market. The maximum search rent we are seeing at present is about $2000pw. One of the reasons for this is that there has been such a strong rise in property prices in the local area over the last 6 months and people that were leasing have now decided to buy and as such there are less potential tenants for properties. We also feel that there are many more properties for lease this year as investors have been buying properties in greater levels than we have seen for several years and there is now an oversupply.
Despite the slower market we are proud of achieving some great recent results including leasing 48 Edgecliffe Esplanade Seaforth for $2500pw after just one inspection Other great results this month were 93 Seaforth Crescent, Seaforth for 3300pw, 14 Beatrice Street Clontarf at $2200 pw and 8 Barrabooka Street at $1425pw. Please contact us if you know anyone that is looking for a property manager – we have been the area specialist for over 18 years.
Best Wishes,
Elissa Carmichael, Emily Crosweller, & Cassandra Campbell
Posted on Tuesday, 15 July 2014 by Website Administrator
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