Sydney investors dominate Beenleigh purchasing four houses for the price of one: HTW

Sydney investors dominate Beenleigh purchasing four houses for the price of one: HTW
Sydney investors dominate Beenleigh purchasing four houses for the price of one: HTW

Investors in the upper Gold Coast are very active for nearly a year, according to valuation firm Herron Todd White.

The latest month in review suggest a majority of investors are Sydney buyers and to a lesser extent Melbourne buyers for established housing.

"The new housing is targeted by a mix of interstate buyers from all over Australia and Chinese buyers."

The report notes that established housing investors are mostly active in Eagleby and Beenleigh areas with price points around $240,000 achieving circa $320 per week rent or 6.93% yield.

It also adds that new housing investors are mostly active in Pimpama and Ormeau where the price point for a typical 4-bedroom, 2-bathroom, 2-car house on a 400 square metre lot is between $460,000 and $480,000 achieving circa $420 per week or 4.55% yield. 

"Investors in the upper north area are far less active in the townhouse and duplex unit market, accounting for only a very small percentage of sales.

"We are of the opinion that investors prefer housing due to historically stronger capital growth compared to units.

"We believe that the investor activity is sustainable in the medium term with interest rates currently at record lows.

"Sydney investors can’t stay away in particular with the median house price in Sydney over $1 million.

"This shows that these investors can buy four houses for the price of one Sydney house.

"Whenever banks tighten lending policy it will have an impact on the market, but how much impact is a case of let’s wait and see."

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Property market Residential Investment

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