Attractions: City's competitively priced prime properties, excellent amenities
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Mr Sunito: Prices in Sydney still rose during the global financial crisis
IT seems investing in properties Down Under is the 'in' thing following the additional buyer stamp duty (ABSD) measures implemented in December and a mercurial stock market that has disappointed many.
More Singapore-based buyers have been snapping up homes in Australian cities such as Sydney over the past few months, with a 25 per cent jump in volume year on year, according to property consultancy Savills.
Buying interest seems particularly intense in Sydney due to its competitively priced prime properties, which are less than half the cost of similar units in Singapore and Hong Kong.
Moreover, the city also boasts strong fundamentals such as a stable political environment alongside world-class amenities and internationally renowned schools, adding to its investment allure.
Said Iwan Sunito, chief executive of property developer Crown Group: "People are coming into Sydney looking for homes closer to the city. Many of them plan to send their kids to schools there. To illustrate, 469,000 international students come into Australia every year, and about 235,000 of them end up in Sydney." In addition, the city's strong banking support is also a draw as it allows buyers to borrow up to 80 per cent or 90 per cent of the residential purchase price.
Properties in Sydney are also seen as increasingly favourable investments due to the escalating housing shortage in the country's most populous city, which has inadvertently driven up home prices over the years.
Mr Sunito said Sydney was the only major city in Australia where prices kept going up during the global financial crisis.
Sydney had an estimated shortfall of 50,000 dwelling units, according to data released by the Australian Bureau of Statistics (ABS).
Mr Sunito noted that one of the fundamental reasons for the lack of supply is the slowdown of building activity by many of the smaller developers.
In addition, a shift in preference among the local community has also driven up prices of homes in the city, and will continue doing so for a while.
For instance, a growing number of young Australians are developing an increasing preference for high-rise city living options to tap on the ease of transport and the availability of amenities instead of going for larger country properties. As such, many Australian-based consultants expect home prices and rents in Sydney to continue trending higher over the next few years.
Seconding the view, Mr Sunito also expects Sydney home prices to continue to appreciate over the next five years as demand continues to outstrip supply.
Crown Group has indicated that it will develop over 1,000 apartments in Sydney over the next 12 months to tap the burgeoning demand in the city.
This will be one of the largest undertakings by a residential developer in Sydney.
http://www.businesstimes.com.sg/spec...g-homes-sydney
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