Investors dominating some Sydney real estate markets, says Raine & Horne

22 June, 2011

Investors dominating some Sydney real estate markets, says Raine & Horne

Investors are officially back, according to leading property group Raine & Horne, and represent as much as 50% of buyers in some suburban markets.

Raine & Horne CEO Angus Raine said savvy investors were recognising that winter 2011 was an opportune time to aquire property.

“Australian shares have taken a hit since April on the back of global uncertainty. In comparison Sydney real estate is enjoying the combined benefits of a lengthy period of interest rate stability, low vacancy rates, and increasing rental yields,” Mr Raine said.

“This is driving more investors back to the safety of bricks and mortar, which has the potential for quality, long-term capital growth.”

Raine & Horne Marrickville principal Michael Smith confirmd investor activity had surged in Sydney’s inner west over the last three months.

“Between March and May, almost 40% of our sales have been to investors,” Mr Smith said.

“This is a significant jump compared with 12 months ago, when investors represented only one in 10 of our buyers.”

Investors had been actively purchasing across all property categories, he said.

“Almost half of all investors bought units in the $320,000 to $450,000 range, while the remainder bought cottages in the $635,000 to $840,000 price bracket.

“We even sold a block of six, two bedroom units at 31 Hill Street, Marrickville, to a local investor for $2.12 million."

Across the Harbour Bridge, and investors are proving a dominant buying force on the lower North Shore, reports David Hill, director of Raine & Horne Crows Nest, with experienced buyers competing for north shore properties.

“Mum and dad investors have been responsible for almost 50% of our sales in Wollstonecraft and Waverton over the last two months,” Mr Hill said.

“This continues an upward swing in investment activity compared to last winter, when investors represented less than 10% of our market.”

Investors had stepped in to fill the gap left by first home buyers, Mr Hill said, while stock shortages had driven the continued high level of interest and competition in the Wollstonecraft, Waverton and Crows Nest markets.

“With increasing rental yields and big numbers attending our rental open for inspections, it is not hard to see why investors are interested.”

Investors are also making their presence felt in Sydney’s south-west, according to Raine & Horne Liverpool principal Vince Labbozzetta.

“At least 50% or more of our sales have been to investors in the last few months,” Mr Labbozzetta said.

“Investors have primarily been looking for two bedroom, one bathroom apartments, which sell for up to $300,000 and rent for between $350 and $380 a week.”

For all your property needs contact Raine & Horne on (02) 9258 5400.

Raine & Horne is an iconic Australian property firm, with more than 360 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

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For further media information contact:

Angus Raine, CEO Raine & Horne, 02 9258 5400

Anna Truman, National Marketing & Communications Co-ordinator, 02 9258 5448