Sydney’s property market has faced its share of woes from the declining prices and sluggish demand. During 2011 and 2012 the market witnessed a consistent fall in housing values here, in tandem with the rest of the country. However, demand for apartments remains robust in Sydney thanks to sustained interest from the Chinese investors. According to a Knight Frank report on the real estate market here, the properties in the price range AU$45,000 to AU $650,000 are sought after by Chinese buyers who are purchasing their first homes. The succeeding price bracket is also a popular choice for those who want to upgrade from their existing homes.
Agents report that, at present, about half of the enquiries received for Sydney properties comes from investors. Considering that investors have yet to react to the lower interest rate environment established here, there is even more scope for improvement in this area. The increased affordability arising from the subdued median dwelling prices and the continuing ease with which good rents can be achieved will keep the interest alive in this marketplace, analysts believe. The fact that demand has not declined following the expiry of the NSW Home Builders Bonus shows that investors are capable of keeping the market afloat and this is working in Sydney’s favor quite significantly, more so than other Australian capital cities.