A property expert in Australia has predicted that investor interest in mid-range priced homes in the country’s largest city, Sydney, will increase by around 10 per cent by the end of this year.
According to Dr Andrew Wilson, the Senior Economist at Australian Property Monitors, interest in houses priced between AUS$500,000 and AUS$1.5 million will outstrip demand for houses priced below AUS$500,000 and those above AUS$1.5 million.
“The AUS$500,000 to AUS$1.5 million price bracket is going to be the strongest portion of the market,” Dr Wilson told Fairfax media. “There’s a lot of activity from investors but very few first home buyers and the prestige market is still relatively flat.”
Low interest rates and increasing buyer confidence are the two key factors driving this sector of the market, the economist says.
In total, Dr Wilson expects property prices in Sydney to increase by between 3 and 5 per cent by the end of this year – “though closer to 5 than 3 – while in 2014 he expects the market to become stronger still and record price growth of around 5 to 7 per cent.
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