The Greater Western Sydney region has been flagged as an investor hub in 2012, with 'affordable' property and strong rental yields expected to entice investors and renters from the city's inner suburbs.
“Investors will continue to head west, lured by affordable property with high returns and higher stock levels,” Starr Partners chief executive Douglas Driscoll said.
“Investors are realising it – and their presence in the area is growing. Rental yields have averaged five-six per cent here, in comparison to Sydney’s inner west where they are three [to] five per cent. This kind of strong rental yield will continue in 2012, assuming the economy will remain stable.”
This trend is expected to continue throughout 2012, on the back of strong infrastructure growth and new developments set across the Greater Western Sydney region.
“We are seeing commercial epicentres emerging here – negating the need for residents to commute to the CBD,” Mr Driscoll said.
Starr Partners has around 20 franchises mainly located in Sydney's western suburbs and Gosford.
“New suburbs and shopping districts are appearing, businesses are establishing and settling out here, the M2 motorway is expanding, new and expanded train stations are emerging, and so are large masterplanned developments,” Mr Driscoll continued.
“No other area in Sydney is seeing that amount of change so quickly.”
Mr Driscoll highlighted the Schofields and Riverstone areas as strong investment hubs in 2012, as well as Pemulwuy.
“A significant amount of land has been released here with quality developments; a major part of the M2 is being widened to three lanes; and a planned Woolworths in Schofields is pointing to the growth of these suburbs,” he said.
“In 2010 Pemulwuy saw an 11.5 per cent increase in the median house price, and 2011 a 5.6 per cent increase. In October, median house prices were eight per cent higher than the median house price for the Holroyd area.”