Sydney's south offers entry-level two-bedroom units for $500,000: HTW

Sydney's south offers entry-level two-bedroom units for $500,000: HTW
Sydney's south offers entry-level two-bedroom units for $500,000: HTW

Half-a-million dollars can still buy you two-bedroom dwellings in Sydney’s southern suburbs, according to property valuation firm Herron Todd White’s residential market report for July, despite the median dwelling price of $782,000 (CoreLogic, May 2016).

In the St George district in south Sydney, nearly 10 kilometres to the south of the CBD, $500,000 will enable the buyer to extend their options. 

Modest, original, older style 1960s to 1970s two-bedroom units with parking around Bexley, Rockdale and Kogarah will achieve average rental returns of $350 to $400 per week. With vacancy rates low and steady demand at this rental band, there are good investment opportunities available to those with the patience to seek them out. 

Within the Sutherland Shire, the buyer may need to extend to $550,000 as this price point will only stretch as far as an older style 1970s to 1980s one-bedroom unit of around 50 to 60 square metres near to the beach in Cronulla. A property on Elouera Road, Cronulla, sold in May for $530,000 and is described as a 1960s one-bedroom, one-bathroom unit within a renovated complex with an open car space. Renovated internally with a modern kitchen and bathroom it included a small balcony and detached store room. Expected rental return is approximately $400 per week. 

On the western fringe of the Shire region towards Sutherland, Kirrawee, Gymea and Miranda, entry level two-bedroom units are pushing towards the early to mid $500,000s. With many new developments planned along with a refurbishment of Kirrawee Village including a new shopping centre and hotel, demand for units in this area has been strong this past 12 months. A recent May sale in Auburn Street, Sutherland, for $502,500 is typical of the area. Described as an original 1970s two-bedroom, one-bathroom unit with single garage in an elevated ground floor position, the property has an expected rental of $400 per week. 

There is a level of caution in the market regarding the outcome of the upcoming federal election in early July. 

“We believe capital gain in 2016 will be slower than previous years although we confirm there has been solid price growth in this value band across the metropolitan area due to overall supply and demand from both investors and entry-level owner occupiers. A key issue yet to be resolved is the government’s proposal for negative gearing changes for investors and what the impact of that will be on the local market. Foreign investors are also likely to be hit with new State stamp duty and land tax charges applicable on purchasing property and the impact of that cannot be assessed until details are confirmed," says the report.

“Last year we touched on a few of the suburbs mentioned above which saw good growth over the past 12 months with a slight adjustment to the end of 2015. With strong rental yields they are still a great investment to add to your portfolio."

Property Observer found a two-bedroom unit at 19/14 French Street Kogarah NSW 2217 that sold recently for exactly $500,000.

 

 

 

 

 

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