Property buyers are being bombarded with daily negative news reports that the property market is slowing down, so many are holding back from buying while they wait for the right time. Leading Australian developer Crown Group is encouraging buyers instead to invest now with a view to long-term gains – and to potentially triple their wealth in 25 years.
CEO Iwan Sunito says recent research from Core Logic shows that Sydney’s median unit price has more than tripled in 25 years, which supports the notion that investors who make long-term purchases in well-chosen locations will make strong capital gains if they buy and hold.
“The fundamental theory is that in the property game, you do not wait and buy but you buy and wait, because property is a long-term game not a short-term game,” he said.
“The fact is that property values over the past two decades has proven itself to be a solid investment – proven that the way to invest a property is to buy and wait, and sit on it to play against time.”
The Aussie/CoreLogic 25 years of Housing Trends report shows that since 1993 Sydney’s apartment values have increased on average by $23,594 or 6.3% per year, a total growth of $600,000. If they were to rise at the same rate, the median apartment value would be $3.47 million by 2043.
“We have seen examples in Sydney area where a house that was $100,000 back in 1993, is now worth $2 million, that is 16 per cent growth per year, not taking into account the potential higher yield from using the equity created by that growth – if the property price goes up, the borrowing capacity increases as well.”
“It doesn’t matter what state the market is in, if you stick by the old property investment principle of buy and hold, you will eventually win out,” Mr Sunito said. “It’s the most basic real estate investment strategy and history shows it works.
“Buy the asset, never sell it, and enjoy the growth in capital gains in order to build your wealth or your equity. Today, you can hardly imagine Sydney’s median apartment price will triple in a few decades, and likewise, people 25 years ago, could never expect the median unit price would be $700,000 today.”
Mr Sunito said the increasing trend towards apartment living over the past two decades would also bode well for unit prices in the long term, as more buyers chose an apartment over a detached house because of the lower price point and more convenient locations.
“Nowadays, Australians love to live in apartments, simply because they can enjoy a luxurious lifestyle close to the city and excellent schools, with good security and lifestyle amenities such as pools and gyms without the hassle of maintenance and gardening,” he said.
Crown Group has apartment projects in six locations in Sydney, Brisbane and Melbourne as well as the USA and Indonesia. Four major residential apartments projects are currently under construction in Sydney.
Residents are preparing to move into the sell-out apartment development Infinity by Crown Group, with its famous looped façade, at Green Square, just 4km from Sydney’s centre. Nearby at Waterloo, the lush and tropical Waterfall by Crown Group is nearing completion.
Also at Waterloo, construction has started on Mastery by Crown Group, the $500 million Japanese-inspired community being developed with Mitsubishi Jisho Residences. Eastlakes Live, the most exciting new address and retail outlet in the Eastern Suburbs is in planning phases.