7 Reasons Why Inner Sydney Is So Attractive To Investors
For the past 15 years Sydney has seen a boom in economic, population and social growth. The underlying reasons for this boom across the city can be summed up in 7 core reasons. And once you understand these reasons, you will also understand why Sydney will remain such an attractive city for real estate investment.
A Stunning City
Sydney has probably got one of the most recognisable skylines in the world. Iconic views of the Harbour Bridge and Opera House in front of the high rises of the central business district are featured in every travel guide and news story about the city.
New Year’s celebrations on TV in Europe, America and Asia will always feature the fireworks show put on by this amazing city. But it is not only a stunning city to look at. The local population and weather combine to provide an exceptionally welcoming place that attracts migrants from all over the world.
Sydney is a true city of villages. This is not just a motto adopted by the city council. There is true meaning behind it. Over the years, careful planning and development have resulted in very different areas and suburbs. Each one has its very own personality.
The city council has divided the inner urban areas into 10 distinct villages. And when you visit these areas you will notice a very different look and feel to them. From Darlinghurst to The Rocks, and from Surry Hills to Millers Point, there is something for every age group and style of living.
Understanding the different personalities of these villages is key to making investment decisions that have the best possible returns. And at Flint Property we can help you through the entire process of finding, evaluating and buying an investment property.
Proximity To The Central Business District
The Central Business District (CBD) is the heart of Sydney and the power house of its economy. You will have great difficulty to find a major international corporation that does not have offices in the CBD.
European, Asian and American business are still flocking to Sydney to create an Asia-Pacific hub. With native English speakers and a very large supply of fresh University graduates every year, Sydney continues to provide the exact ingredients that are needed to sustain such economic development.
Hardly a week goes by without major jobs announcements by large international companies that already employ thousands of people.
The Growth Trend
The growth trend for the Sydney property market has been significantly higher than the Australian average. But that is matched by a significantly higher population growth as well. Young adults and families are arriving in their thousands because Sydney can provide what very few other cities can. A great standard of living with exceptional medical services, good all year round weather, schools, and of course direct access to some of the most beautiful beaches in the country.
The latest Census figures show projections for population growth to continue on the current trajectory. And with ever more high tech jobs being on offer there is no reason to believe that the growth trend will not continue.
Many of those new arrivals will initially require rental homes. And that provides an unmatched opportunity for investors. With lots of young professionals looking for rental homes the occupancy rates for your investment will be exceptionally high.
Opportunities For Investing In A Trend
But not only is there high demand for residential property. Yes, all those people arriving to fill jobs in the CBD do need a home. But before they arrive, there has to be somewhere for companies, both large and small, to set up their offices and shop fronts.
While there are many other areas around Sydney that are suitable for commercial premises, nothing shows more success than a mailing address in the inner Sydney suburbs. These are also the areas where young people want to live and work, in order to fully experience everything the city has to offer.
Transport System Upgrades
One of the big struggles for any city that expands as much as Sydney has, is to keep up with the transportation needs. Millions of people every week travel into and out of the CBD for work and pleasure. While there are several initiatives to improve transport, a lot of residents are concerned about these changes and their impact.
Firstly, there is the Light Rail to Kensington, which is a 12 km route with 19 stops along the way. Once completed (estimate 2019) it will run from Circular Quay to Kensington via George Street and Central Station. And it will carry about 9.7 million people each year.
Another major initiative is the WestConnex expansion project whichhas faced a lot of opposition. The project involves a western bypass of the CBD, western extension of the M4 motorway and expansion of the M5. The result will be 16 km of new tunnels and 7.5 km of road widening. A lot of the opposition has been to the tolling plans and the expected traffic disruptions.
Essentially, Sydney is developing into a city like New York with large Burroughs that all need to be connected. That will take time, but significant progress is being made.
Urban Growth Plan
Inner city urban planning has been a top agenda for the council for decades. The success of that planning can be seen in how popular the city really is. Very few people that are born here leave. And at the same time thousands are adding to the population every month.
The council has created a significant plan for the future. And what is really unique about it is that it is based on the feedback from residents and business owners in all 10 villages. This plan started in 2012 and welcomed suggestions that included ideas and concerns from the very people that urban plans affect the most.
By taking into account the needs and requests of residents and business owners, the city will become even more attractive to inward migration and international investment.
Another plan being worked on is a $250 million investment into the new Pyrmont Fish Markets with an expected completion date of 2020. This plan will double the current fish market size, which is in the interest of businesses and residents.
Finally, the industrial areas bordering Alexandria comprise of 17 hectares that are being planned for redevelopment into residential neighbourhoods, with local shops and restaurants. Over a 10 year period the plan is to make homes available for 6000 residents, making it one of Sydney’s largest development projects.
To help you make the best investment choices and to fully understand the best opportunities in the inner-city areas you should contact us today at Flint Properties. As one of the leading Sydney buyer’s agents we can provide you with the exact advice you need to make your next investment provide maximum returns.