Australian Property Monitors (APM) has highlighted Sydney apartments as the number one domestic market for growth potential in 2008.
According to the latest data collected by the group, Sydney apartment values grew by a tiny 2 per cent in 2007 in contrast with 15 per cent and 11 per cent growth in Melbourne and Brisbane respectively.
Sustained rental growth and shrinking vacancy rates combined with the latest figure are a strong indication that investors could look to capitalise on this “undervalued” market segment.
“Sydney house and unit values have been the laggard of the Australian property market for over four years now,” said Michael McNamara, general manager of APM.
“With Sydney apartments looking so cheap compared to other capitals and assuming there is a transfer of cash from stocks to other asset classes, we have Sydney apartments as our number one pick for growth over the next few years.”