Inner city units still a solid and affordable investment, experts

Speaking to Smart Property Investment, RP Data senior research analyst Cameron Kusher said while some investors have shunned the inner city markets in favour of cheaper, high-yield properties in the outer suburbs or regional areas, inner city units are still a viable investment.

“Inner city units afford residents the opportunity to live in suburbs in which they would otherwise not be able to live,” Mr Kusher said, “and as a result, they can attract a premium.”

Mr Kusher added that investors looking to strong yields should consider inner city units over houses.

“Units have tended to have higher gross rental yields over the past five years and have enjoyed higher rates of capital gains,” he said.

“Particularly in inner city areas, units are a more affordable option and tend to have greater rental demand at a lower purchase price.”

Leading inner city property adviser and Wakelin Property Advisory director Monique Sasson Wakelin said as long as the right sort of property has been chosen, inner suburban property investment in our major capital cities has a proven track record of strong and consistent capital growth.

“This is because the supply of property is highly constrained by the lack of development sites in our inner suburbs, whilst demand is underpinned by population growth and the desire of many Australians to live in areas with the highest density of amenities like healthcare, education and entertainment and proximity to job opportunities,” Ms Wakelin said.

“Over the long run, rising demand versus inflexible supply inevitably leads to capital growth.”

To find out more about inner city investments and discover the top 20 inner city suburbs in Australia, pick up a copy of Smart Property Investment, on newsstands today.