Arncliffe, Market Update 2022
The Sydney Property market has been one of the strongest and most consistent performers over the last four decades. With the recent opening of international borders, Sydney will be a major recipient of new residents, putting extra pressure on our property markets, particularly the rental markets. Sydney is now experiencing an increase in demand for apartments in affordable areas within close proximity to the city, such as Arncliffe. According to the data, the suburb of Arncliffe delivered a stronger performance in contrast to other Australian suburbs in relation to the appreciation of property value. Investors saw the median home price rise to $709,000. Average median unit prices in New South Wales have risen as a whole, pulling Arncliffe, 2205 values up and netting property investors a capital gains of 3.13% for the past year.
"Real estate investors could earn
a rental income of $500 per week"
Arncliffe now ranks at the 436th place on a list of fastest growing suburbs in the territory. Figures from the previous quarter show that capital gains for real estate buyers in Arncliffe are high, as opposed to average gains per annum over the past five years. Real estate investors could earn a rental income of $500 based on current median home prices for the suburb. The population in Arncliffe is strong and growing, with a population of 16,579 and the median age being 34. It is projected that Arncliffe will see an increase in 25,000 new residents by 2036, half of which will be in the young workforce, aged 25 to 34 years old. Arncliffe's strong growing population is a result of the creation of 19,000 new jobs in the pipeline between now and 2031. In 2031 47,000 people are forecasted to be employed at Sydney airport, while 17,000 are projected to be employed in Hurstville and its environs. A further 16 000 will be employed in Port Botany. Additionally, a jobs and technology hub to rival Silicon Valley or Tel Aviv, is being brought to life in 2026 on the site of Sydney's Central Railway Station. The new Tech hub is only 4 stations away from Arncliffe and is projected to create 100 new companies, along with 25,000 new innovation jobs.
"Vacancy rates in Arncliffe trending
toward below 2%"
The government’s medium-growth scenario forecasts 151,000 new homes will be built in the next five years. This forecast is well below the 50,000 a year requirement needed to meet the demands enforced by the growth in population. Arncliffe's vacancy rates are trending towards under 2%. Declining completions and population increases will add further downward pressure in the next several years and beyond. To support this, REINSW members continue to report an extreme shortage of stock. Reports released identify that there are not enough properties in the rental pool to satisfy tenant demand. As a result, there is a very small handful of new build 2x2 stock available and it is snapped up quickly. The remaining stock is old build apartments with no appeal to the changing demographic of Arncliffe and Bayside.
"Millions in funding for local Bayside
gentrification pipeline"
Arncliffe has been designated as a planned precinct by the New South Wales Government. Millions of dollars in funding for the gentrification of the community has been approved by Bayside Council. These upgrades include a $3 Million revamp to Arncliffe town centre, with bicycle lanes, an increased local tree canopy to the tune of 900 trees, and the rejuvenation of public parks and amenities. Further, a vision for the new park next to Arncliffe Station on the corner of Arncliffe Street and Burrows Street has been proposed. This park will be at least 7,000 square metres in size, including recreational space, areas for children's play, an off-leash dog park and community facilities. With public transport being used by 76% of the city's population, the completion of the master planning for Arncliffe Train Station could not come at a better time. The canopy extensions will encourage commuters to use the full length of the platform in all weather conditions, to ease platform congestion during busy times. Construction for the Train Station is expected to begin in mid-2021.
If you have any questions or are ready to purchase your next investment,
Please don't hesitate to contact your Property Strategist.
Referencing,
rent.com.au
SQM Research
Article Authors
Emilia Zambri & Oscar Boman
Equity Rise,
Level 3, 31 Alfred Street,
Sydney, NSW 2000, Australia
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