Flexibility and greater affordability on offer for wise Sydney property buyers

Western Sydney is increasingly the smart choice for canny property investors, a new report suggests.

The Month in Review report for March 2023 by property valuation and advisory group Herron Todd White singled out the region as representing more varied and affordable options with consistently strong yields for both units and houses over the next few months as investors and owner-occupiers navigate a volatile property market.

“Western Sydney has always been a smart choice for investors and owner-occupiers alike and despite the weaker market, we consider this should continue throughout 2023,” the report said. “The high level of infrastructure investment in the region coupled with relatively lower median house prices and the shift to more people working from home has highlighted that more affordable and larger homes with backyards are still hot property and good long-term propositions.

“The ever-popular house and granny flat is a staple for Western Sydney investors given the larger block sizes and versatile living arrangements for extended families or as a pure investment.”

While values have softened over the past 12 months, the falls have not been nearly as substantial as they have been in other parts of Sydney. The report points to areas such as Blacktown where median values dropped by just 1.2 percent over the past year to $870,000 while yields have increased by 7.5 percent to $457 a week over the same period. The results are even more significant in Penrith, where median rent for a two-bedroom unit now sits at $420 per week, an increase in yield of 4.1 percent. At the same time, the median price of a two-bedroom unit has risen by 11.4 percent to $532,500 over the past year. The report points to the area’s relative affordability and planned infrastructure to account for the rise.

Greater demand for more rental units around universities as students return to the Australian higher education market has been responsible for increased yields around Macquarie Park, the report said, as staff and students at Macquarie University seek accommodation.

“There are only 110 units currently available for rent with an estimated 1500 renters actively looking for accommodation,” the report said. “Macquarie University is home to more than 44,000 students and 2000 staff members. The Australian Government predicts a further 40,000 international students are expected to arrive in Australia for first semester classes in 2023 commencing in March.”

At the moment, the rental yield for Macquarie Park is 3.6 percent, while the average yield for the rest of Sydney sits at 2.7 percent.

National director of residential at Herron Todd White, Ben Esau, said that there is likely to be further volatility in the residential market in the coming months as more borrowers come off fixed interest rates. Estimates suggest that up to a third of mortgage holders are fixed on lower rates, with most expected to end this year. While it may provide opportunity for those looking to add to their portfolio or enter the market, as the RBA continues to lift rates, caution is advised to those chasing higher yields.

“Although the prospect of increasing rental values may seem attractive as an investor, it may not be so straightforward as landlords need to grapple with the process of potentially passing on increasing interest rates to struggling tenants,” Mr Esau said.

“Of course, there are also investors who will be significantly impacted by the increasing costs to service an investment property, but where banks are generally well structured to deal with clients in financial distress, individual landlords may not have that capability and may need to navigate chasing increasing returns and the human impact of a fast-paced rental market.”

Mirvac has topped out Trielle at Melbourne’s Yarra’s Edge, with more than 70 per cent of the riverfront development sold and approximately 80 per cent of purchasers intending to make their apartment a home.

The figures, released on September 22, point to an owner-occupier audience for one of the precinct’s final residential towers. Mirvac began developing Yarra’s Edge in 2003, and its latest addition occupies one of the remaining absolute riverfront sites.

Mirvac CEO of Development Stuart Penklis said existing residents were among those moving up within the neighbourhood.

“Many purchasers already have a connection to Yarra’s Edge,” Mr Penklis said, describing buyers whose changing needs were encouraging an upgrade within the precinct.

“As one of the final residential towers within Yarra’s Edge, Trielle represents the culmination of more than two decades of creating one of Melbourne’s most established and sought-after waterfront communities,” Penklis said.

“Positioned on the Collins Street axis with absolute river frontage, Trielle offers residents a rare opportunity to enjoy sweeping views across the Yarra River, Melbourne skyline and Port Phillip Bay, while remaining seamlessly connected to the CBD. With Trielle now more than 70 per cent sold, we’re continuing to see strong demand from buyers seeking quality homes in established locations.”

The developer also flagged a penthouse and sub-penthouse collection with larger layouts, premium finishes and broad outlooks. The planned wellness centrepiece, The Oasis, encompasses a 900-square-metre elevated urban rainforest.

Mirvac General Manager Residential Development Victoria Elysa Anderson said Trielle had resonated strongly with buyers seeking a rare lifestyle offering in Melbourne.

“Opportunities to secure a new luxury residence on a riverfront site of this calibre are incredibly rare, particularly within a community like Yarra’s Edge,” Anderson said.

“What makes Trielle unique is the combination of exceptional views, world-class residential facilities and the lifestyle that already exists around it. Residents are buying into a mature waterfront community with parks, promenades, dining, wellness and strong community connections already in place.”

The 45-level tower brings a substantial new presence to that waterfront. Its residential offering spans one-, two-, three- and four-bedroom apartments, with Signature, Prestige and Sub-Penthouse collections accommodating different household sizes. The north-facing position connects the apartments visually to the river and city beyond.

Seven storeys above the promenade, the planned Oasis combines planting and a running stream with a Scandinavian-inspired wellness club developed with spa specialist Naomi Gregory. Facilities include a 25-metre lap pool, hot magnesium pool, sauna, hydrotherapy, a gym, yoga and Pilates room, and treatment spaces.

The amenity extends beyond exercise. Residents will have access to The Biblioteca library and workspaces, ground-floor work pods, and The Salone piano lounge. A private Chef’s Table dining room offers a setting for larger gatherings, while a cinema, games room and sports lounge broaden the entertaining options. Concierge services and a dog-wash area support everyday routines.

Trielle comprises a collection of one, two, three and four-bedroom residences. Reflecting strong demand from owner occupiers, approximately 80 per cent of purchasers to date intend to live in their homes, highlighting the project’s appeal to those seeking a long-term waterfront lifestyle.

Mirvac has recently delivered The Albertine, a premium apartment development on the edge of Melbourne’s CBD, and is nearing completion of Prince & Parade in Brunswick, further strengthening its portfolio of thoughtfully designed apartment communities in some of Melbourne’s most sought-after urban locations.

Flexibility and greater affordability on offer for wise Sydney property buyers

The smart money is on this part of the nation’s most expensive capital as prices hold steady and yields continue to perform consistently

Mirvac’s 45-level Trielle has topped out at Yarra’s Edge, pairing riverfront apartments with wellness facilities, private dining and resident services.