Mid-2021 update: Lower North Shore rental apartment market
When my father founded Home Property Agents over 30 years ago, he chose Sydney’s Lower North Shore as the ideal location in which to set up his fledgling real estate business. He knew the area and liked it – including the people who choose to buy and live here.
In this blog, I’ll give you an overview of what’s happening in the apartment market on the Lower North Shore and why we continue to place our faith in this charming Sydney enclave.
What’s happening in the Sydney property investment market?
If you read the pundits, you’d be forgiven for being confused, with differing pronouncements from various experts. However, we must take into account that these property experts are speaking generally.
The Lower North Shore possesses unique characteristics that make it, in our opinion, an evergreen investment opportunity due to its attractiveness to tenants. Let’s take a look at three of the suburbs we service: Cammeray, Cremorne and Neutral Bay.
About Cammeray, Cremorne and Neutral Bay
All these suburbs have relatively young populations. Most of our residents are professionals who choose the Lower North Shore for the buzz, the proximity to the city and the range of housing stock available. Renters also appreciate water views, when they can find a suitable property to rent, and they’re prepared to pay a premium while living close to the CBD – even in these uncertain times.
The suburbs of Cammeray, Cremorne and Neutral Bay all have a high proportion of older style homes, ranging from Art Deco apartment blocks to newer multi-dwelling apartment blocks.
We’re happy to be dealing with older-style properties. Property investors are learning the lessons from Mascot Towers and other newer high-rise apartment buildings. They choose not to take on risks that could include construction defects and lack of capital growth as ultra-modern buildings tend to be located in areas of vast supply.
As every local knows, the Lower North Shore is defined in part by Military Road, the artery that delivers life to our enclave, with high-end shopping, cafés, restaurants and professional services. Open space is easily accessible in our beautiful location situated on Sydney’s Lower North Shore. In Neutral Bay alone, we have Anderson Park on Neutral Harbour plus the playing fields and remnant bushland at Forsyth Park.
What’s happening with rentals on the Lower North Shore?
According to Saul Eslake, independent economist and long-time forecaster, right now Australia is enjoying a boost to domestic spending due to our closed international borders. Australia’s economy is humming along but most pundits expect that it will weaken towards the end of 2021 unless we reopen borders and boost immigration to absorb vacancies.
Given that most immigrants arrive in Sydney or Melbourne, we expect to see current vacancies absorbed quickly in 2022 as many rental properties return to being short-term rentals. We’ve already seen that many of our owner-occupiers on the Lower North Shore are choosing to upgrade to larger properties while retaining their units as investment properties.
Snapshots of Cammeray, Cremorne and Neutral Bay
Cammeray NSW 2062
Cremorne NSW 2090
Cremorne has a high proportion of single-person households at 56%.
Neutral Bay 2089
Neutral Bay has a high proportion of single-person households at 62%.
Can we help with your Lower North Shore property?
With our long standing experience and expertise in Lower North shore property, we’re here to help with a hands-on approach and highly experienced property managers to optimise the value of your investment property. Call us today.
