Zetland unit capital growth falls off sharply

Zetland unit capital growth falls off sharply
Zetland unit capital growth falls off sharply

The wave of new developments and urban transformation in Sydney is changing the markets in many regions of the city. 

The inner east region around Zetland and Waterloo has been undergoing a period of rapid transfiguration. Formerly largely an industrial area, it is now being transformed by a range of new developments, such as Green Square (pictured above), that are gentrifying the area and making it more attractive to a new breed of buyers.  

Postcode 2017 in NSW comprises the two suburbs of Waterloo and Zetland and Property Observer has looked up the trend in units in the two inner-east suburbs from Corelogic and SQM Research to find out how these changes are affecting the market.

Waterloo profile

Waterloo is spread over nearly 1 square kilometre and had a population of 10,662 people in 2011, a growth of 25% from 2006.

The median sale price for units in the area was $850,000, almost double the national average of $438,000, according to CoreLogic. The median prices for units is similar to the median unit price in Sydney.

In the past 12 months, 366 properties sold in Waterloo, with the number of days on the market being 61 on average. There are 64 properties for sale, according to propertyvalue.com.au. 

It takes on average 64 days to sell with vendor discounting of -4.36%.

Capital growth in unit prices in Waterloo have shown double-digit growth in the three years up to 2015, according to CoreLogic RP Data, with 2014 growth at 18.7%, nearly double the city’s 9.9%. 

Zetland unit capital growth falls off sharply

The household occupancy pie chart shows that nearly three quarters in the area are renters, which indicates a high number of apartments bought for investment. 

The median rent for units was $645 per week with a median gross yield of 4%, according to CoreLogic.

Zetland unit capital growth falls off sharply

Zetland area profile

The size of Zetland is nearly 1 square kilometre with a population size in 2011 of 3,812 that has grown rapidly at 45% from 2006. 

The median unit price of units in the area was $880,000, well above the city’s $850,000, data from www.propertyvalue.com.au shows.

In comparison to Waterloo, capital growth in unit prices in Zetland was just 1% in 2015  a sharp fall from 16.1% the previous year, RP Data shows.

 Zetland unit capital growth falls off sharply

In the last 12 months, 183 properties sold spending 58 days on average on the market and there are presently 41 units available for sale.

The pie graph shows renters make up just about half the units in the area at 49%, while 37% are owner occupiers. The median rent for units in the area is $6500 per week with a median gross yield of 3.8%.

Zetland unit capital growth falls off sharply

SQM research has figured out a scatterplot chart of sold properties in the 2017 postcode. The chart reveals the relationship between sold prices verses land size.

A "best fit" curve represents the relative relationship between the sold price and landsize, which is called the Price Per SQM Co-Efficient Curve. A regional comparison is provided by the purple curve.

Zetland unit capital growth falls off sharply

Tags: 
Suburb Spotlight Waterloo Zetland

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?