With all the uncertainty surrounding the market right now, largely due to rising interest rates, it can be difficult to determine what your next investment move should be.
Recent research from CoreLogic, Australia’s leading Property Data company, shows the premium for houses over units has narrowed dramatically across all capital cities since May 2022.
Whilst the pandemic saw house price premiums over units surge, analysts are now beginning to acknowledge the rapid reverse of this spike in recent months.
The demand for apartments from investors has been rising steadily throughout 2022 – a trend that economists are now predicting to continue well into 2023.
Read on to find out what has caused this recent spike in demand for units and as a result – 10 key reasons why a ONE The Waterfront apartment could be the perfect investment leading into 2023.
1. Affordability
With the RBA predicted to continue increasing the cash rate well into 2023 rental pressures in Sydney are expected to continue for the foreseeable future.
This coupled with the overall rise in cost of living has begun to bridge the gap between Sydney’s house and unit values. As borrowing capacity continues to fall, buyers and renters are left with no choice other than to find a place to live that they can afford. This has led to units becoming rapidly more desirable and currently in high demand for first time home buyers and investors alike.
With ONE The Waterfront apartment pricing starting as low as $599,000, securing an affordable brand new Sydney apartment in a desirable location like Wentworth Point is an ideal outcome, especially considering the current market landscape.
2. Low Supply + Increase in Migration
According to SQM Research, Sydney’s overall vacancy rate has decreased to 1.3 per cent as of October 2022, the lowest level on record since May 2011.
Whilst COVID-19 caused great disruption to Australia’s usual Net Overseas Migration figures, resulting in temporarily higher vacancies and falling rents for the unit sector, the most recent National, State and Territory population statistics for the period March 2022 (released in September 2022) show Migration to Australia is already making a strong return post pandemic.
Over the peak of COVID-19 (June-20 to Sept-21 quarters) a total of 109,591 people left Australia. Yet a quick turnaround has already occurred with the last two quarters (Dec-21 and Mar-22) seeing a total of 124,849 people enter Australia, with the most recent March 2022 quarter being the highest quarter on record since 1981.
Property Advisor Firm Charter Keck Cramer anticipates that this high-level return of Migration is likely to be sustained and in fact may be greater (and return faster) than the Federal and State Government forecasts.
Further, figures show that student and working visa approvals are rapidly increasing with a substantial surge in visa applications since June 2022.
This sudden increase in Migration has already begun to drive demand for Australia, in particular Sydney dwellings, with those invested in the apartment market predicted to strongly benefit from this spike in demand.
This stands to create significant investment opportunities and returns across the current apartment sector, especially within Sydney, which sees a larger share of migration in comparison to other states.
3. Ready to Move in
In addition to migration, the rise in building costs post COVID-19 coupled with a shortage of supplies has caused major disruption within the construction industry. This is continuing to cause lengthy delays for many Sydney developments.
As a result investors need to be wary of the time until the property they choose to invest in can officially begin generating a return. The low supply of already completed new build apartments will continue to worsen across Sydney over the next 12-24 months which is why now is the perfect time to secure an already completed new build apartment before stock levels lower further and prices rise.
Purchasing an already completed new build apartment this side of Christmas will mean investors can begin generating rental income straight away, taking full advantage of the current competitive rental market.
ONE The Waterfront still has a limited number of 1, 2 & 3 bedroom completed apartments available now – making it a great option for investors to secure today before completed stock sells out.
4. Rental Growth
The strong demand for rentals and limited supply is now leading to significant increases in advertised rental prices.
According to SQM Research, Sydney’s median unit rent has reached $581 per week (As of November 2022) – after their steepest annual increase in 14 years.
Economists are now forecasting an extra 10 per cent growth in Sydney’s rental market by mid-2023.
Rental values are rising fastest in the more affordable unit sector as tenants seek out cheaper rental options.
With Wentworth Point’s median unit rent currently coming in at $600 per week (as of November 2022) ONE The Waterfront apartments’ rental earning capacity is sitting above the NSW average but still within the affordable rental range for tenants.
As Sydney unit rental prices continue to increase, this becomes yet another positive of investing in a ONE The Waterfront apartment today, with buyers able to benefit instantly from higher rental returns for their new investment.
5. Area Demographic
According to the ABS Census data for 2021, the average age of residents residing in Wentworth Point is 32 with a relatively even split between male (48.5%) and female (51.5%) occupants.
For the employment breakdown within the area, Wentworth Point residents listed ‘Professionals’ and ‘Managers’ as the most common occupations with 66.3% of Wentworth Point residents working 35+ hours per week.
According to SQM Research, the average weekly family income for Wentworth Point households is currently $2,441. In comparison the NSW state average family income is currently $2,042.
By 2026, this family household income is predicted to rise to $3,340 for the suburb of Wentworth Point.
This young professional demographic prominent within the Wentworth Point area further attracts reliable tenants – another important factor to consider when purchasing an investment property.
6. A Vibrant Location
ONE The Waterfront’s rich and diverse collection of apartments offer wonderful views to the water, the surrounding parklands and the CBD skyline.
With a travel time of 30 minutes to Sydney’s CBD and 15 minutes to Parramatta’s CBD, Wentworth Point is conveniently located between these two major business hubs.
One The Waterfront is also exceptionally well connected with regular bus services, the ferry wharf at the end of the street and Rhodes Train Station a short walk across the new footbridge.
The free Baylink Shuttle service provides an added bonus with connections every 10-15 minutes to 11 different locations including Rhodes Train Station.
Neighbouring Sydney Olympic Park, ONE The Waterfront residents also have direct access to Stadium Australia and Sydney International Aquatic Centre – plus a bounty of nature reserves and parklands – Millennium Parklands, Wentworth Common and Bicentennial Park. Plus, 35 kms of cycling trails and walking paths all within close proximity.
Bennelong Bridge connects Wentworth Point with Rhodes – a destination in its own right, thanks in large part to Rhodes Waterside. A major retail development which houses the likes of IKEA and Reading Cinemas. Plus, DFO, Paddy’s Markets and Sydney Markets are all nearby.
The Piazza also offers OTW residents a European inspired village less than 100m from their doorstep with access to cafes, restaurants, medical centre, pharmacy, convenience store and more. Marina Square, is also a mere 1.3km from ONE The Waterfront, offering a stellar line-up of dining choices and local shopping amenities.
7. Future Development
With a proposed light rail and various other community projects in the pipeline, this waterside suburb is an investment opportunity that should not be missed.
Neighbouring Sydney Olympic Park, Wentworth Point locals already have direct access to world-class sporting and recreational facilities, but the area continues to rapidly evolve with the addition of the URBNSURF Sydney due for completion in early 2024.
The new wave park (pictured above – render courtesy of URBNSURF) will offer multiple lagoon-side amenities including a café, rooftop bar, beach club, fully equipped pro-shop, beach cabanas, skate ramps, children’s playground, rock-climbing and more.
In addition to this, the NSW Government is continuing to invest heavily in Wentworth Point, having in the last month alone begun construction on a new high school for the up and coming suburb.
Minister for Education and Early Learning Sarah Mitchell stated; “We are committed to ensuring our students have every opportunity to achieve their potential with world-class learning facilities and soon families in Wentworth Point will be able to access a new, local high school.”
The new multi-million dollar high school forecast for completion in late 2023, will include flexible learning spaces, a multipurpose hall for sports and performances, outdoor spaces including landscaped recreation areas, games courts and canteen facilities.
This will complement the relatively new Wentworth Point Public School (Opened in 2018) that’s located a short 1.4km from ONE The Waterfront.
8. Long Term Value
Wentworth Point currently has a median unit price of $720,000. Across the bay, Rhodes has a median unit price of $900,000 showcasing the area’s vast potential for future growth.
With the future developments mentioned above combined with ONE The Waterfront’s already highly sought after location and amenities, it’s clear these apartments are in a healthy position for long term gains.
9. Resort Style Facilities
Adding further value to all ONE The Waterfront apartments is the resort style facilities of the complex.
Residents of OTW are able to enjoy tennis courts, a fully equipped gym, lagoon style swimming pool, indoor lap pool, sauna, 20 person indoor cinema room, games room, bbq areas, an outdoor playground, outdoor fitness stations and an open-air cinema.
All OTW apartments also include the latest home automation and technology, state-of-the-art fibre optics and Urmet technology providing unrivalled high-speed connectivity.
10. Limited Time Free Strata Offer
Last but not least – Piety Group in conjunction with Laver Residential Projects, are running a unique ‘Free Strata’ offer.
For a limited time only Piety Group will cover the first 2 years of Strata Levies for any new OTW purchasers* who sign a contract between now and January 31st 2023.
This latest exclusive offer adds even more value to all ONE The Waterfront apartments currently on offer – reinforcing their position as the perfect investment opportunity leading into 2023.
*Terms and conditions apply. For more information visit onethewaterfront.com.au
