Competition among property investors is driving well above average growth in the value of units in Sydney. One such investor is Nathan McIlroy who is selling his apartment on the back of an incredible 28% growth in the area, largely fuelled by investment.
Investors are paying over the odds for these properties simply because there is no other option. Demand is outstripping the supply and this means that missing out on a purchase now means paying more later on, explained news.com.au. Because of this competition prices have increased dramatically.
RP Data shows that 11 Sydney suburbs have experienced 20% growth and a total of 96 suburbs have seen unit value increase by at least 7%.
Growth has been largely attributed to the introduction of government incentives to buy new properties. When tied in with low interest rates investment becomes more appealing and, in a competitive market, people are willing to pay more.