The Australian city of Penrith in New South Wales has seen median price of its residential homes record a 13.5 percent growth over the past 12 months ending June 2014, with one result being an increase in the number of investors looking for strong capital growth.
According to a report by PRDnationwide, the forecast for the region is positive as overall supply in central Sydney is restricted, sending buyers to the west of the city. Penrith, located 50 kilometres from the central business district, has recorded the strongest performance in the region over the past 10 years.
PRDnationwide Research Analyst Harrison Hall noted that in the past five years the price of houses has grown 29.2 percent and for units, the growth is topping 18.6 percent.
Hall said: “The area is predominantly families and couples, however demographics are expected to become more diverse thanks to more employment opportunities.”
He also noted that the government’s planned infrastructure projects totalling approximately AUD$7.1 billion is seen as very attractive to those looking to invest.
Investors currently make up around 50 percent of the market, and have been coming from all areas of the metropolitan area. With a unit rental market growth over the past 12 months at 2.4 percent, the average yield is approximately 4.5 percent.
“The main points of attraction for buyers are good connectivity, affordability and strong growth prospects,” Hall added.
Image: Penrith NSW map by crico and NASA satellite maps via Wikipedia.
Andrew Batt, International Group Editor of PropertyGuru Group wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
