Wednesday 5 June 2024

Sydney's Property Supply Problem


Why is there such a shortage of property in Sydney? 
With Australia’s population ever-expanding, housing supply shortage is a growing issue for our population. Australia-wide, the total number of for-sale property listings is approximately 30% lower than a decade ago. Here are the chief factors that have caused the supply crisis: 

Limited Land Supply – This is most prevalent in the inner city suburbs of major metropolitan areas 

Increasing Hold Periods – Home owners and investors appear to be holding their properties for longer, particularly in blue chip suburbs 

Increasingly Sluggish Activity of Residential Development – far fewer Development Applications are being lodged due to the following two point 

Inefficiencies in the Planning System – the process that developers need to go through with councils are increasingly frustrating 

Rising Cost of Construction – Building costs including labour and materials have been seriously exacerbated by the Covid-19 pandemic 

Sydney’s Limited Housing Supply
Nowhere is supply more of an issue than in major capital cities. Sydney’s population has grown at such a rate that there are literally not enough homes to shelter everyone. All the factors listed above have created a perfect storm in terms of limited supply, with Inner City suburbs being particularly under-stocked vis-à-vis demand. 


Historic housing construction approvals in Greater Sydney and regional NSW
Source: Australian Bureau of Statistics 2022, Department of Planning and Environment analysis



How Supply has Radically Affected the Rental Market
This supply shortage also has a flow on effect in the rental market, with low stock levels and historically low vacancy rates creating radically increased demand resulting in record levels of rent increases. This is great news for investors, who are able to get increased return on investment and have far less chance of vacancy than in times gone by. 

Considering Property Investment? With further property supply and rental property shortfalls anticipated for 2025 and 2026, investing in available property now could be the way to go. Offering solid return on investment and capital growth over time, purchasing an investment property, particularly if exceptionally designed in a desirable, well connected location, makes good financial sense. Cramer Property have a selection of outstanding properties all very close to completion, ready for rental within mere months. Contact Emma Chappell today to learn more:

Emma Chappell
Head of Projects (Sales & Marketing)
emma@cramerproperty.com
Mob: +61(0) 404 769 509 

Disclaimer: This article contains general information gleaned from various sources. All information is of a general nature only. This information is not a substitute for specific legal, financial or accounting advice.

Wednesday 1 May 2024

Surry Hills Village: A Haven of Luxury Living and Exquisite Retail Experiences

Surry Hills Village: A Haven of Luxury Living and Exquisite Retail Experiences 


Artists Impression, Surry Hills Village Retail Laneways

Surry Hills & Redfern are neighbouring inner-city suburbs of Sydney, Australia, that are about to undergo an incredible revitalisation with the opening of TOGA’s Surry Hills Village Residences, Terraces and Retail Laneways. 

Surry Hills Village, a beacon of luxury living and premier retail experiences, is nearing completion, poised to redefine modern living in the heart of Sydney. With the final touches being applied to the Residences and Terraces, residents and visitors alike eagerly anticipate the grand unveiling in mid-2024. 

Nestled within the vibrant Surry Hills / Redfern district, Surry Hills Village offers an unparalleled blend of sophistication, convenience, and community. Boasting meticulously crafted residences and terraces designed to exceed the highest expectations, this development promises to elevate the standard of urban living. 


Artists Impression, Wunderlich Lane, Surry Hills Village

One of the most anticipated features of Surry Hills Village is the enchanting Wunderlich Lane, an eclectic haven for food connoisseurs and beverage enthusiasts. Scheduled to open its doors to the public between July and September 2024, Wunderlich Lane will tantalize the senses with an array of culinary delights and artisanal drinks, carefully curated to satisfy every palate.

Artists Impression, Surry Hills Village

Moreover, Surry Hills Village is proud to announce the arrival of esteemed retailers, further enriching the local landscape. In June 2024, esteemed shopping brands such as Harris Farm, Coles, and Vintage Cellars will unveil their offerings, providing residents and visitors with unparalleled access to premium groceries, fine wines, and gourmet delights.

Artists Impression, Surry Hills Village Retail Laneways

Surry Hills Village represents more than just a collection of residences and retail spaces; it embodies a lifestyle characterized by luxury, diversity, and sophistication. Whether indulging in the culinary delights of Wunderlich Lane or perusing the aisles of renowned retailers, residents and visitors will discover a harmonious blend of modernity and tradition within this dynamic urban oasis.

For more information and updates on the Residential Apartments, Terraces and Penthouse remaining for sale at Surry Hills Village, please contact Emma Chappell:

Emma Chappell
Emma Chappell Head of Projects (Sales & Marketing)
emma@cramerproperty.com
Mob: +61(0) 404 769 509


 

About Surry Hills Village:

Surry Hills Village is a premier residential and retail development situated in the heart of Sydney's vibrant Surry Hills district. Offering luxury residences, terraces, penthouses and a diverse array of retail experiences, Surry Hills Village is poised to redefine modern urban living. With its commitment to excellence and community, Surry Hills Village invites residents and visitors to experience the epitome of sophistication and convenience in one of Sydney's most sought-after locales.
ENQUIRE NOW about the incredible luxury Residence that awaits you.

Tuesday 9 April 2024

BREAKING NEWS - Sydney’s apartment market predicated to rise by 23% in next 3 years


Wicks Place, Marrickville

Sydney’s apartment market predicated to rise by 23% in next 3 years


Leader in global economic forecasting and quantitative analysis, Oxford Economics Australia have released their report, Residential Property Prospects. The extensive research conducted predicts that in the coming 3 years, Sydney apartment prices will rise by a staggering 23%, outperforming houses which are estimated to climb by 16%. 

Dwelling Stock Deficiency


The report forecasts a growing gap between the number of dwellings being built and the number needed to house Australia’s expanding population. Oxford forecasts there will be a “stock deficiency’’ of 97,284 dwellings in 2024 – a number that will grow to 145,470 by 2026. Oxford Economics senior economist and report author, Maree Kilroy, said this shortfall would underpin prices for houses and units nationally, as well as keep upward pressure on rents. 

Record Migration and Low Vacancy Rates


Record net overseas migration and a sharp decline in residential property construction has caused the rental market to tighten in 2023, with the national capital city vacancy rate remaining at an extremely low 1% causing the recent record high rental rates. Oxford Economics predict a slower but still robust rental inflation in 2024, with house rental costs to rise by 4.1% and apartment rental rates by an even higher 5.8%. 



Projected Interest Rate Cuts


The report states that Sydney’s skyrocketing house prices will push property buyers to the more affordable apartment market, lifting apartment demand and therefore driving apartment prices up. And the interest rate cuts that are projected to track downwards from the latter part of 2024 will cause apartment prices to rise commensurately as more people who can afford the finance hit the market. 

Decade lows for dwelling approvals, commencements and completions


The worsening “stock deficiency” projected by Oxford Economics is supported by the latest dwelling construction data from the Australian Bureau of Statistics (ABS), which shows dwelling approvals, commencements, and completions are tracking around decade lows at the same time as Australia’s population is growing at a record pace. And as it doesn’t appear that the Albanese Government is going to slow its full steam ahead approach to immigration anytime soon, Australia’s housing shortage will only worsen, placing upward pressure on both apartment prices and rents.


Surry Hills Village, Redfern

Investor confidence strengthening


The detail in Oxford Economics’ report provides a welcome boost to the confidence of many investors that now is a good time to invest in Sydney apartments. If you are interested in either investing or purchasing a fantastic new residence, Contact the Cramer team today to learn more about Wicks Place, Marrickville or Surry Hills Village.

Emma Chappell
Head of Projects (Sales & Marketing)
emma@cramerproperty.com
Mob: +61(0) 404 769 509 




Wednesday 31 January 2024

Will 2024 be a good year to buy Sydney real estate?



As the New Year kicks off, leading economists are already anticipating a national surge in property prices. The projected price increases are being driven by a pronounced property shortage, the rental market crisis, the stabilisation of interest rates and a new wave of immigration. And as usual, Sydney property is at the forefront of the Australian price surges.

In spite of increasing mortgage costs, the housing market showed exceptional resilience last year, with a nationwide increase of over 8%. This achievement defied pessimistic forecasts and marked a substantial turnaround from the 5% decline observed the previous year. And Sydney property prices increased by a whopping 11.1% over the last year since January 2023. These increases are seen particularly in lifestyle or blue chip suburbs where properties are tightly held causing further supply issues.

                                           

Over the past two years, the Reserve Bank has implemented a series of 13 incremental cash rate hikes, ultimately pushing interest rates to a high of 4.35%, all in a concerted effort to combat persistent inflationary pressures. However the prevailing opinion amongst economists and financial experts predicts rate cuts across the next quarter, with experts asserting that Australia’s central bank has reached the peak of its tightening cycle.

Sydney Property supply issues are reaching critical levels, driven by our ever-expanding population, fed largely by the new immigration surge, the sudden increase in renters who want to own their own home and those moving back to the city after the mass exodus induced by the covid-19 pandemic. The Sea Change dreams of some who left at this time have been turned on their heads, with the realities of regional life prompting a desire to move back to ‘the big smoke’.


      SOURCE: Sydney Morning Herald
                         
Regarding renting, PropTrack economist Angus Moore found that Sydney is by far the most expensive city to live in in Australia and the undersupply of property continues to see rental prices rise, at an astounding 11.1% in 2023! Based on median rents, Sydney is $10,000 a year more expensive to live in than Melbourne. The low availability and incredibly high rents are forcing many into the housing market before more property prices rises occur.

In light of the exponentially rising rental market of the past year, it makes sense for would be First Home Buyers and First Time Investors alike to place their feet firmly on the property ladder. And with property prices set to rise again, there really is no time like the present. In the words of property guru, Michael Yardney, “Rather than trying to time your next property purchase based on where we are in the cycle, take a long view and if your income is secure and the time is right for you, this may be an ideal time to get a foothold in the Sydney property market while others are sitting on the sidelines.”

So if you are serious about getting into the property market, or would like to purchase a brand new, architecturally superb, fabulously built home, Cramer currently have on offer some outstanding properties in Sydney’s best blue chip and lifestyle suburbs, call the Cramer team today to learn more.