Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Latest


Must Read


PM Tech Startup Growth Sales Marketing Industry Buyers Agent

Startup


Buyers Agent


Our Events


Real Estate Business Awards 2021

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

LEARN MORE
VIEW ALL
top 10 agents

Alexander Phillips

Top 1

Year of Experience: 21

Support Staff: 3

Residential Property Listings Secured: 241

Total Value of Residential Properties Sold: $ 706,737,500

VIEW COMPLETE REPORT
1/10
Do you have an industry update?

top suburbs

12 month growth
Manyana
70.61%
Tamarama
70.55%
Box Hill
64.95%
Goodwood
64.38%
Bawley Point
63.64%
Lennox Head
62.11%
Casuarina
62.08%
Queenstown
61.31%
Warana
60%
Cooroibah
59.43%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.

Inner-city digs above median: RBA

By Michael Crawford
29 October 2014 | 1 minute read

Pent-up demand for medium- and high-density living has driven prices of inner-city properties above the national median, according to Luci Ellis, Reserve Bank of Australia head of financial stability.

Speaking at an urban planning seminar at Sydney University, Ms Ellis said Australia is still struggling to keep up with demand, unlike the US where market forces exposed oversupply in housing markets, which subsequently crashed.

According to Ms Ellis, there is an assumption in Australia that more housing is needed to accommodate the people who are arriving from overseas.

Advertisement
Advertisement

“Where do students want to live, and where are recent graduates likely to want to live?” Ms Ellis asked.

“Well, it’s not big family homes on the fringe. It’s apartments in the inner-city areas near the universities.

“There’s a consequence to that, though – the premium to being closer has increased. There’s always a premium to being close, but it’s got larger.”

Director of Belle Property in Sydney’s inner-city suburb of Glebe Mark Tooth said there is huge demand for properties around the inner-city given the current state of home loans and sweeteners like no stamp duty for first home buyers.

Mr Tooth said these factors are driving the demand.

“Post-graduate sales and single-person households who are enjoying a certain socio-economic level are the biggest growth industry, especially for studio or one-bedroom properties, and there is a temporary oversupply,” Mr Tooth said.

“The demand is driven by people already working in the city, not students. Students are happy to stay in share houses like terraces or on campus ... around here the inner-city studio apartments are well presented, in good condition and not the old ‘studio’ type.

“Although, we are seeing some average- to moderately-priced investments being bought by mum-and-dad super funds and we see the occasional parents buying property to give their kids a start.”

LJ Hooker Glebe sales executive John Yannakis said he does see the occasional family from overseas looking to buy a property for their son or daughter but stressed that it's not a majority.

“A lot are owner-occupiers and we do get young professionals, families with one child or possibly two, but generally I wouldn’t say there is an oversupply, but a good opportunity to sell at auction or prior to,” he said.

Inner-city digs above median: RBA
new sydney
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.

Tags:

ABOUT THE AUTHOR


Listen to other installment of the Real Estate Business Podcast
top 10 agents

Alexander Phillips

Top 1

Year of Experience: 21

Support Staff: 3

Residential Property Listings Secured: 241

Total Value of Residential Properties Sold: $ 706,737,500

VIEW COMPLETE REPORT
1/10
Do you have an industry update?

top suburbs

12 month growth
Manyana
70.61%
Tamarama
70.55%
Box Hill
64.95%
Goodwood
64.38%
Bawley Point
63.64%
Lennox Head
62.11%
Casuarina
62.08%
Queenstown
61.31%
Warana
60%
Cooroibah
59.43%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.