Coastal city benefitting from Sydney investor rush
Generous yields, affordable commercial real estate and changing perceptions about its economic outlook are helping Wollongong attract Sydney investors.
According to John Kersten, co-principal of Raine & Horne Commercial Wollongong, the city’s yields of nine per cent are almost impossible to find in Sydney thanks to a surge in the construction of new commercial assets in the capital.
“Low interest rates are also working in favour of local investors, with banks and fund managers struggling to compete with the yields generated by Wollongong's commercial real estate market,” he said.
Mr Kersten said the growing number of out-of-town investors also reflects the changing perceptions of Wollongong’s economic prospects.
“Sydney investors are recognising that Wollongong is transitioning from a steel-dependent city to an important knowledge services centre, international trade hub and a leading university city,” he said.
“The Illawarra is the third-largest regional economy in New South Wales, worth in excess of $16 billion in goods and services, and with its close proximity to major Australian cities such as Sydney and Canberra, it is an ideal place to live, work and do business.”