Predicting a relatively subdued market on the back of a slow paced winter and an uncertain election outcome, the Association said:

Historically, the busiest selling periods are generally late summer and early autumn (February to April) and the spring months. House prices in New South Wales predicted to stabilise over the spring months as a larger number of new listings come onto the market. In general terms, the property market will be moving forward but at a subdued pace with prices being more regulated by affordability concerns of buyers.

REBAA President, Mr Byron Rose said he expected a late start to the spring selling season due to last weekend’s election. “Historically spring is the time that the property market moves up a gear,” said Mr Rose. “The hung parliament will no doubt postpone the start of the season but we are predicting good stock levels throughout the coming months after a delay by vendors to list due to the election. The market may still be soft with demand light on so vendors may need to readjust expectations amid a high level of market uncertainty amongst home buyers.”

Rich Harvey, CEO of Sydney-based buyer’s agency Property Buyer and NSW state representative for REBAA, believes the spring selling season will be a fairly subdued affair for NSW. “February to May saw significant market activity and price rises but with the onset of winter, the market has taken a breather,” said Mr Harvey. “Consumer confidence still has some way to go, unemployment is declining and interest rates are on hold for the time being. Essentially I see the pendulum swinging back in favour of the buyer for the Sydney market as more listings means more competition amongst vendors. “Prices are unlikely to decline, due to the significant undersupply of around 25,000 dwellings per annum in the Sydney market and constricted land supply (as well as slow planning decisions by local councils).”

Michael Ramsay, Principal Michael Ramsay Property and VIC state representative for REBAA, said that while Melbourne had eclipsed its rival capital cities for capital growth for the year ending 30 June 2010 with a massive 27.9% hike, this trend was not likely to be sustainable. Mr Ramsay predicted home prices to steadily maintain momentum with growth in the vicinity of 8-10% per annum and unit growth of 6-8%. Auction clearance rates would hover at 70% and rental vacancy rates would remain at 1.5 – 2%. “Becoming more common is the enquiry for commercial property,” said Mr Ramsay. “With capital growth nearing a parallel with residential property, net yields of 5%, 5-10 year leases and mandatory annual rent increases of 3-4%, a commitment into the commercial arena especially for the time poor buyers is seen as a viable and attractive option.”

Liz Wilcox, Principal Hot Property Specialists and QLD state representative for REBAA, said Mum and Dad investors were now looking at key regional areas in Queensland which were set to benefit from federal and state government funding over the coming years. Areas which had levelled off over the 12 months but were set to move forward include Toowoomba, Gladstone, & Bundaberg. Key areas to watch included Meadowbank and adjoining suburbs, along with Cannon Hill, she said.

Chris Waterman, Principal Waterman & Waterman and SA state representative for REBAA, said confidence in the South Australian property market was returning with Adelaide’s median house price reaching $410,000 in the June quarter, breaking the $400,000 barrier. Also in the June quarter, a record number of properties were sold across the state for more than $1 million and a record sale of $6.5 million was achieved. “This spring, opportunity exists for the first home buyers and investors in the southern and northern suburbs of Adelaide where stock numbers are up and volumes down,” said Mr Waterman. “With rental demand high, low vacancy rates, affordable prices, a sound economy with a great forecast, makes South Australia the ideal market to buy this spring.”

Rob Zubin, Principal My Property Hunter and TAS state representative for REBAA, said many vendors were waiting for spring to list their property for sale in Tasmania. “The hung parliament for Tasmania and then the hung parliament for the federal government seem to have had an impact and generally slowed down activity,” said Mr Zubin. “Early indications are that the spring will bring new confidence and I see strong activity in both Hobart and Launceston where property will become more available as the market shakes off the cobwebs of winter. “With marginal increases expected over the short-term, investors will still be able to secure well priced property for under $300,000 to achieve a balance of growth and return. I expect growth of around 7-8% p.a. with returns in the range of 5-6%. Strong demand for rental property will continue vacancy rates to hover at around 2%.”

Daren Schneider, Managing Director Heron Todd White Property Advisors and WA state representative for REBAA, said there was currently a high level of market uncertainty with many homebuyers still experiencing difficulty obtaining finance. “Investors have begun to return to the WA market taking advantage of considerable price corrections in some suburbs in recent months and historically still attractive interest rate levels,” said Mr Schneider. “WA has the highest population growth (as a percentage) and lowest unemployment rate in Australia along with a booming resource sector, so the fundamentals for future property price growth is there. “Buyers need to remember that property markets are cyclical. Timing will only become a factor if you are a short-term investor.”

More information contact:

Byron Rose

REBAA President

Ph: 02 9327 6944

Mob: 0411 694 081

About REBAA

The Real Estate Buyers’ Agents Association of Australia (REBAA) was founded in 2000 to raise the profile of buyers’ agents nationally and to establish guidelines for the professional conduct of real estate buyers’ agents. REBAA maintains a close working relationship with the state-based Real Estate Institutes as well as the national body and makes regular contact with other organisations to represent the interests of its members.

For more information go to www.rebaa.com.au

Exclusive real estate has been immune to rising interest rates and a failing stock market according to a report in The Daily Telegraph. The report says that $120 million has been spent on prestige properties on just ten homes in the last three months.

However, it’s not all good news for sellers with luxury homes being sold for less than market value. At Carrara Road in Vaucluse, a property was exchanged for $26.75 million which was the highest sale of the year. However, at approximately 3 million below the rumoured $30 million asking price, it was sold for a lower price than expected.

Other exclusive real estate sold in the three-month time period eclipsing 8 figures included a luxury property in Drumalbyn Road, Bellevue Hill at $20m, Bay Street, Mosman at $11m, Barrenjoey Road, Palm Beach at $10m and Wolsely Road, Point Piper at $10m.

However, it does show that bargains are to be found at the top end of the market despite the multi-million dollar asking prices and you can still get change out of a 30-million dollar exchange.

The Sun-Herald reports that agents say that Brisbane families with “old money” in Queensland are behind a surge in prestige property sales. One agent went so far to say that the demand was so high that she was selling million dollar mansions within hours of listing them.

Despite the slowdown in the high-end market from last year, 2010 is proving to be a busy year for those buying exclusive real estate.

An increasing number of prestige properties have been sold to investors keeping up the market evidenced by the increase in investor finance in the past 12 months. This has filled the gap left by exiting first home buyers and other owner-occupiers.

Still on the east coast, there is also a surge in confidence in the Melbourne housing market. According to The Sydney Morning Herald in mid August, 18,294 properties had been put up for auction in 2010 – the highest number recorded for that period of the year by the Real Estate Institute of Victoria (REIV).

The Daily Telegraph says despite the gradual recovery, Sydney’s luxury market is well off its 2008 peak, when $198 million was splurged on the top 10 properties in one quarter.

Contact Amanda if you would like help buying real estate in Sydney or surrounding areas such as the inner west, east, lower, mid and upper north shore and northern beaches. Buyers agents in Sydney like Amanda keep abreast of the latest news and developments about exclusive real estate and uses her insider knowledge to help you negotiate prestige properties, waterfront real estate and properties at the best price possible.

It’s a well known in real estate that the market determines the price of a property not a seller so a buyers agent can often source property at a better price than an individual.

Properties that are priced appropriately with vendors who are willing to negotiate to meet the market are more likely to sell than those that are overpriced or over market value. To source property that falls into this category is not always an easy task, however a buyers agent can conduct this research on your behalf.

Buyers agents have a wealth of experience and knowledge combined with an extensive network of contacts such as developers and real estate agents. These contacts will also be privy to information such as new housing developments, planned infrastructure and current market trends which could affect the buying price of a property.

Economists say that market conditions are starting to soften in certain areas but some vendor’s prices are yet to reflect that. Many vendors are yet to catch up with the swift market cooling of the last couple of months and want higher prices than buyers are prepared to fork out.

This has become somewhat apparent in the luxury property market where it has been reported in The Daily Telegraph that buyers at the prestige level, unaffected by the interest rate rises are sourcing properties at lower than expected prices.

The report says despite the eight-figure price tags, buyers were still looking for bargains and hoping to source property for less than the asking price. Dyson Austen director Simon Feilich said that “Even at these prices, if you’re getting a property less than they’re asking, it is still a bargain.”

A Sydney buyers agent like Amanda can help you source property at the right price, drawing on her years of experience and hundreds of sales, as well as her insider knowledge of the Sydney property market.  Contact Amanda if you would like help buying properties in the Sydney inner west, inner city, east, north shore and the northern beaches.

With the recent NSW budget, the NSW Government has put in measures in place to address the increasing lack of housing affordability by abolishing the NSW stamp duty for people purchasing a home ‘off the plan’ and under $600,000.  An ‘off the plan’ purchase in simple terms means buying the home before construction is completed.

A 25 per cent NSW stamp duty cut will also apply to those buying a home worth up to $600,000 which is under construction or just completed.

Under the two-year plan, beginning July 1 this year, those purchasing properties off-the-plan will pay no stamp duty, a saving worth up to $22,490 each, Mr Roozendaal, the NSW Treasurer said.

The over-65s will also benefit from the announced changes. They will get a stamp duty exemption if they downsize and buy a newly constructed home to use as their primary residence.  

“This will apply to people over 65 who sell their primary place of residence and move to a newly-constructed home – whether it is house or an apartment,” Mr Roozendaal said.

Other announcements in the budget include a cap on council charges for development at $20,000 which is a much welcomed change.  Previously development charges per block could be as high as $60,000 in NSW and there was very little consistency between councils and regions.  These savings will hopefully be passed onto customers in the form of cheaper properties and land.

Mr Roozendaal said the measures were aimed at boosting housing supply and housing construction rates across the state and are a key driver of economic growth.

Property Council of Australia NSW Acting Executive Director Glenn Byres believes the slashing of the NSW stamp duty for new houses will stimulate much needed new housing construction and improve housing affordability in the state.

“We need new solutions if we are going to close the supply gap and tilt the affordability equation back in favour of home buyers,” NSW Acting Executive Director Glenn Byres said.

“The Government has done the right thing in recognising that cuts to stamp duty targeted at new homes will drive supply and lend a hand to homebuyers.

“Sydney faces an enormous task in providing 26,000 new homes a year to accommodate the inevitable growth in population.

“Stamp duty cuts targeted at new homes elevate the prospects of bringing forward supply that fits the demands of the Metropolitan Strategy.

The Housing Industry of Australia (HIH) says that new housing development has a knock on effect throughout the construction and related industry. The HIH says that for every $1 million of construction output, tens of thousands of dollars are spent on primary materials, transport, and property services.

The end of financial year is a great time to re-evaluate current investments and to invest money that you might have received from your tax return, consider downsizing or trading up. Professional buyers agents can help you search for a new development or an existing property in your desired search location and within budget. Contact Amanda Segers, if you would like to take advantage of the recent NSW stamp duty reductions.

Amidst another rate rise and decreasing housing affordability in Sydney, there are suggestions again from economists that the housing bubble has burst but the RBA is quick to dismiss these claims.

The Daily Telegraph reported that figures released by property analysts Residex in May revealed Sydney now has 5347 streets where the median property value is over $1 million. That’s up from 3367 last year, a rise of 58 per cent.

With the most expensive properties traditionally being waterfront properties or luxury properties isolated to the northern and eastern suburbs of Sydney, the analysis shows the million-dollar mark is being achieved in outreaching western Sydney and southern Sydney suburbs.

The Daily Telegraph reported that streets that entered the territory this year include Lancelot St in Concord ($1.207 million from $984,500), Fitzroy St in Burwood ($1.2 million up from $851,030), Holt Rd in Taren Point ($1.27 million from $963,000), Lyneham Place in West Pennant Hills ($1.176 million from $817,435) and Cromerty Place in Glenhaven ($1.18 million from $997,267).

The nation’s most expensive road remains Billyard Ave in the harbourside suburbs of Elizabeth Bay, with a median value of $17.8 million previously home to media heir Lachlan Murdoch and actor Russell Crowe.

Sydney’s median house price overall is $651,500 according to April figures almost $190,000 ahead of London, where the median price for a two- to three-bedroom house is $462,000.

As reported in The Daily Telegraph, according to research done by Residex which did a comparison of real estate prices in the biggest cities around the world, the average house in Sydney is more expensive than the average home in London and New York.

Residex head of research John Lindeman said: “It’s quite incredible that houses are cheaper in those cities than in Sydney. But it’s caused by the demand for Sydney houses, which keeps outpacing the supply – and that’s not going to change any time soon.”

House prices have continued to rise, despite the RBA’s six rate rises since October last year, with commentators blaming the widening gap between housing demand and supply.

The decline in housing affordability continued early in 2010 with higher house prices, increased interest rates, and the removal of the first home buyers’ boost according to the latest HIA-CBA First Home Buyer Affordability Report.

HIA Senior Economist, Mr Ben Phillips, said that further interest rate rises in April and May of 2010 will likely mean that the June quarter result will see affordability crash to the record lows experienced when interest rates were above 9 per cent in 2007.

“With the Reserve Bank insistent on further rate rises, housing affordability will once again be a key issue in the mortgage belt regions of Australia,” said Ben Phillips.

“We are yet to see the required level of co-operation between all levels of government to deliver critical housing infrastructure without hitting new home buyers,” said Ben Phillips.

“Higher interest rates, exorbitant infrastructure charges, an overly restrictive and time consuming planning system continue to fuel Australia’s affordability crisis. Overcoming these issues will go a long way towards restoring housing affordability in Australia,” said Ben Phillips.

Luci Ellis from the RBA agrees that the limited supply of quality housing is putting added pressure on home buyers and forcing housing prices upward but financial lenders will need to remain stringent in home loan approvals.

“Housing prices have been under upward pressure in Australia. The nature of the demand shock Australia faces means that it would be helpful if more of that demand could be accommodated with extra homes for occupation, instead of by higher prices. Some of that pick-up in construction does seem to be happening.”

Astute buyers facing interest rate rises, a shortage of quality properties and decreasing housing affordability choose to use buyers agents in Sydney like Amanda to source properties for them. Buyers agents bypass the cattle call of open houses and show you silent listings (houses not yet listed on the open market), arrange private viewings and head to the streets to find properties for sale in your desired locations.

Contact us if you would like help buying real estate in Sydney or surrounding areas such as Sydney’s inner west, lower, mid and upper north shore and northern beaches regions.

As interest rates rise and housing affordability in Sydney reaches record highs, Luci Ellis, the head of the Reserve Bank’s Financial Stability Department has dismissed the notion of a housing bubble in Australia, but has warned potential first home buyers of the risks in overextending themselves in the housing market.

A recent report released by the Commonwealth Bank using information compiled by RP Data shows the opportunities for first home buyers are actually more wide spread than most would have thought – first home owners just need to know where to look and what to look for.

When it comes to first home buyer purchasing options, surprisingly, Sydney leads the way. Over the second half of last year there were 8,712 houses and units (4,118 house sales and 4,594 unit sales) sold across Sydney that were within 10 per cent of the average Sydney first time buyer price of $388,167.

For houses, only 33 of these sales occurred within suburbs less than 10 kilometres from the Sydney CBD. For units, 1,265 sales occurred at a distance of less than 10 kilometres from the Sydney CBD.

Of all the capital cities, properties detailed, only 6 per cent of transactions for houses have occurred within 10 kilometres of the city whilst 38 per cent of unit transactions have occurred within the 10 kilometre radius.

This was not all bad news for first home buyers with houses recording a lower level of value growth than units during 2009. This trend was duplicated across each capital city including Sydney with unit growth outpacing house value growth.

Despite the fact that property values rose strongly during 2009, these figures highlight that there are still many opportunities for first home buyers to purchase properties in locations at or around the average affordability range of a first time buyer but options may be limited if you want to live close to the city and buy a house.

This report also suggests this trend points to more first home buyers choosing units as opposed to houses due to the more affordable price points. This is due in part to changing demographics and increased demand for apartment living and is creating more demand within the unit sector than what has historically been the case.

Inner city apartments are not only more affordable but will result in generous capital gains if they are bought in good locations close to public transport, shopping centres, restaurants and cafes. However, if first home buyers are prepared to widen their search and live in the outer suburbs of Sydney, houses can be found within the average first time buyer price of $388,167.

Housing affordability for new houses and apartments will be further reduced by the changes to the First Home Owner’s Grant which comes into effect on 1 July 2010 where first home owners purchasing a new property will revert back to $7k as opposed to the current $10k on offer.

Moving forward, with population growth remaining strong and first home buyer numbers anticipated to soften with changes to the grant, we are likely to see upwards pressure on rental rates and as a result it is expected that weekly rents and investor yields will continue to improve through 2010.

Housing finance data from the Australian Bureau of Statistics (ABS) shows that buyers returned strongly during 2009. First home buyer demand is now softening and early signs suggest that investors are set to pick up some of the slack during 2010.

This has been evident in recent housing finance data which shows that the number of loans for owner occupiers is decreasing and investor finance is increasing.

Whether you’re a first home buyer or an investor, a buyer’s agent in Sydney like Amanda can advise first home buyers on what the best locations to buy in terms of capital growth, show homes and apartments not yet listed for market and can help with the negotiation process to secure the best possible price for the property within budget.

Contact us if you would like help buying real estate in Sydney or surrounding areas such as Sydney’s inner west, lower, mid and upper north shore and northern beaches regions.

As Australian homebuyers face another interest rate rise, industry experts say that this won’t affect housing prices in the Sydney property market which are being driven upwards by a lack of supply.

The Federal Government’s National Housing Supply Council released their second State of Supply Report in April. In its findings, the council estimated there is a cumulative undersupply of 178,400 dwellings.

The greatest undersupply in dwellings was found to be within New South Wales (57,600) and Queensland (56,100). The states with the smallest estimated shortfall in housing were found to be: South Australia (100) and Tasmania (1,000).

The National Housing Supply Council estimates that by 2014 the gap between supply and demand will increase to 308,000 dwellings nationally. This is well short of the estimated figures the Sydney Metropolitan Strategy say are needed for Sydney to cater for an extra 1.12 million people in the next 25 years.

However, Australian Bureau of Statistics March 2010 figures released in early May revealed that, after two months of decline, private sector home approvals for new dwellings are now in the black, with a 14 per cent seasonally adjusted increase in March.

The Urban Taskforce’s chief executive, Aaron Gadiel, said the March result more than cancels out the 9.5 per cent decline in private sector approvals in January and February and is the best March result for these approvals since 2004.

NSW saw a seasonally adjusted 62 per cent lift in private sector home approvals in the Sydney property market – more than making up for the 30 per cent decline in home approvals recorded since October 2009.

RPData reported that despite a drop by 3.4 percent over the month in seasonally adjusted terms in the value of housing loan commitments taken out in February for both existing and new homes, the value of investor finance has remained much more resilient in the Sydney property market. The decrease is due partly to a decrease in first home buyers.

Investors not daunted by the rising interest rates and the mounting property prices in Sydney account for just over 31 percent of the value of all housing loans, up from a recent proportional low of just 24 percent early last year. The value of investor loan commitments fell by just 1.1 percent; the first month-on-month fall since interest rates started to rise.

RPData say that investors are likely to remain one of the most active market segments going forward as they are much less sensitive to interest rate rises and affordability issues.

It will be interesting to see how the changes to foreign investment laws announced in April by the Federal Government will impact the real estate landscape.

Temporary residents buying property in Australia will now need to be screened and get permission from the Foreign Investment Review Board to buy a property. Foreign investors will also have to sell their property when they leave Australia.

The move is a reversal of the relaxation of foreign ownership rules 18 months ago. The tightening of foreign investment rules is a move welcomed by industry experts who have long believed that foreign investors have been a strong factor in driving prices up in the Sydney property market and pushing first home buyers out of the market.

Buyers agents in Sydney like Amanda keep abreast of the latest news and developments about real estate in Sydney and help you buy prestige properties, waterfront real estate and properties not yet listed in the Sydney property market. Contact Amanda if you would like help buying real estate in Sydney or surrounding areas such as the Sydney Inner West, East, Lower, Mid and Upper North Shore, Northern Beaches regions.

With yet another rate increase tightening the clamp on existing mortgage payments and crippling some buyers who did not foresee the rapid increase rise – the fifth increase in seven months, this will not dampen the desire to buy houses on sale in Sydney, real estate experts say.

Despite recent reports that Australia is faced with a property bubble, Real Estate Institute of NSW, Wayne Stewart has rejected those claims saying that interest rates will have little impact on demand for houses for sale in Sydney which is being driven by the lack of housing in the Sydney market.

“Prices in the Sydney market are heading in one direction and that is up. At the coal face we are seeing more buyers active in the market than we have seen in recent years, a fact which is reinforced by the extraordinarily high auction clearance rates.”

“Claims made [in late April] that prices will plateau are not just misleading but are highly inaccurate. Quite simply there are not enough properties for the number of buyers and that is reflected in the number of new housing loans been created.”

“To claim that this situation will result in lower prices reflects a fundamental lack of understanding of what is happening on the ground in Sydney,” said Mr. Stewart.

The Australian Bureau of Statistics March 2010 figures released in early May revealed that, after two months of decline, private sector home approvals have returned to positive territory, with a 14 per cent seasonally adjusted increase in March.

The Urban Taskforce’s chief executive, Aaron Gadiel, said the March result more than cancels out the 9.5 per cent decline in private sector approvals in January and February and is the best March result for these approvals since 2004.

“These monthly figures are volatile, but it seems there is hope that a recovery is taking place in new home construction across Australia,” Mr Gadiel said.

“In terms of private sector approvals, Victoria delivered a strong result with an 11 per cent seasonally adjusted increase – delivering more such approvals in March than any previous March recorded in ABS record-keeping history.

“NSW saw a seasonally adjusted 62 per cent lift in private sector home approvals – more than making up for the 30 per cent decline in home approvals recorded since October 2009.”

The prestige property market in Sydney certainly hasn’t waned with a luxury property on the market with a price tag of $30 million.

The property is owned by private equity investor Patrick Keenan, and his wife Elizabeth, and is located in the luxurious eastern suburb of Vaucluse.

The three story European style waterfront property features six-bedrooms, five-bathrooms, six powder rooms, a 15 metre pool, guest suite, library, wine cellar, home office, theatre room and uninterrupted views of Sydney’s beautiful harbour.

Five parties are vying for the Carrara Road home, two of which are from Asia, two are locals, and one is from the US.

With houses for sale in Sydney reaching record prices, the Daily Telegraph reported that up to half of Sydney’s property market is being sold silently, according to industry sources. Normally reserved for people looking for prestige properties, the average home buyer is now turning to buyer’s agents in Sydney to secure a property.

Don’t be priced out of the Sydney property market – as reported by the Daily Telegraph, buyer’s agents are now being used by the average Australian to find houses for sale in Sydney. Contact Amanda whether you’ re a first home buyers, looking for a luxury property or prestige properties or an investor looking for an astute buy in the Sydney Inner West, East, Lower, Mid and Upper North Shore, Northern Beaches regions.

Up to half of Sydney homeowners are set to become property millionaires and own luxury real estate in Sydney, with house prices predicted to double in the next decade, the Sunday Telegraph revealed.

Figures prepared exclusively for the Sunday Telegraph by Australian Property Monitors (APM) show Sydney’s median property price is on target to reach $1.2 million, averaging 7.6 per cent growth per annum.

This means that the current median house price of $595,745, according to the Australian Property Monitors will jump to a medium price of above $1 million by 2020 in accordance with this new research.

This falls into line with new figures released by the Australian Tax Office (ATO) that Sydney suburbs were home to the nation’s highest earners and owners of luxury real estate and prestige properties in 2007–08 as reported by Ninemsn.

The ATO data confirms Sydney’s status as Australia’s wealth capital with seven of the top ten earning suburbs located in the premier state.

Mosman, Dover Heights, Bellevue Hill, Northbridge, Woollahra and Hunters Hill all made the top ten with average income of more than $127,000.

Sydneysiders who have the postcode 2027 (Edgecliff, Darling Point, Point Piper and Rushcutter’s Bay) were the highest earning in the country with an average taxable income of more than $185,000.

As well as having the highest taxable income in the country, the suburbs in postcode 2027 also have the most prestige properties in what is widely regarded as the wealthiest street in Australia: Wolseley Road.

While residents of 2027 boast the highest taxable income, which includes income additional to salaries, residents of Mosman on Sydney’s north shore earned the highest salaries in Australia.

Residents of Mosman earn an average of $106,397 every year. The harbourside suburb also has the most expensive luxury real estate in Sydney with the average detatched house costing $1.92 million, according to Australian Bureau of Statistics figures released late last year.

The ATO data also confirmed Australia’s great Australian dream of property ownership is alive and well. According to the data, one in seven taxpayers owns at least one property. While the majority of individuals (72.5%) had an interest in only one rental property, the number of individuals with multiple interests is increasing – by 7.7% in 2007–08 showing the number of investors is on the rise.

Rising house prices as well as a buoyant economy put the focus back on investment properties and the prestige property market, as investors consider the profits of high growth luxury real estate in Sydney the near future.

APM researcher Cameron Kusher said to The Australian that rising confidence and the rebounding share market is underpinning demand for waterfront homes and other prestige properties and prices will rise by 10-15 per cent in the luxury property market this year.

Contact Amanda who is a buyer’s agent in Sydney to secure your waterfront, prestige property and luxury real estate in Sydney.

Real estate is hotting up in Sydney with new research revealing the medium house price for houses will rise over the million dollar mark in 2020, the Sunday Telegraph reveals. This means an estimated 625,000 houses across the metropolitan area will have a value of more than $1 million changing the face of Sydney real estate hot spots.

Growth areas include Rouse Hill and Kellyville in Sydney’s north-west. Similar growth is expected for Narellan Vale, Abbotsbury, Cecil Hills, Bligh Park, Glen Alpine, Woronora Heights, Wattle Grove and Kellyville Ridge with an expected of price tag of over $1 million in 2020.

Sydney real estate hot spots are traditionally growth areas, up and coming suburbs and locations with changing demographics.  Premium suburbs within 10 to 12km of the CBD, luxury waterfront and prestige properties and those that have scarcity value are likely to perform well.

John McGrath from McGrath Real Estate says his top picks for property investors include suburbs like Dee Why in the northern beaches, Coogee in the eastern suburbs, Erskineville and Surry Hills in the inner city and Lane Cove and Cammeray in the northern suburbs of Sydney.

The luxury property market in areas such as Palm Beach who were the hardest hit by the Global Financial Crisis is also set to make a price recovery in 2010. Apartments in areas close to the city, such as Cremorne Point and Balmain, are expected to make strong returns for investors by 2020.

A growing migrant population and not nearly enough houses are also driving up house prices in Sydney. The Sydney Metropolitan Strategy says Sydney needs to cater for an extra 1.12 million people in the next 25 years.

Factors such as recovering share market prices, migrants buying up big in Sydney and the return of the bank executive’s bonuses are also driving up prices of luxury properties both in waterfront and inner city locations generating good returns for investors. 

High rents and gross yields, rising house prices as well as a recovering economy puts the focus firmly back on investment properties and the prestige property market, as astute investors consider the long term gains of high growth Sydney real estate hot spots.

To be a successful investor in Sydney it is best to identify areas that have finished the “down swing” phase of the property cycle and are now starting to move forward. The Australian Property Directions Survey by the Australian Property Institute says that residential property in Sydney will be on the upswing in 2010.

Amanda who is a buyer’s agent in Sydney specialises in investment property in the Sydney inner west, inner city, east, north shore and the northern beaches. She can help you identify Sydney real estate hot spots and investment opportunities in Sydney. Remember investing in property is a long term investment strategy and if you buy the right property in the right location at the right time, the capital gains growth will almost always follow.