SYDNEY: A PROFILE OF THE CITY

Sydney was first settled by Europeans in 1788, and by 1902 when the states of Australia were federated to form one Nation, the population of Sydney, the countries largest city, was only 200,000.

Today, Sydney is host to a population of approximately 4.7 million, and has an annual growth rate of 2.7%. Australia has actively encouraged immigration since 1945 from all points of the globe, and the result is a truly cosmopolitan society.

Sydney is highly regarded as an international centre for commerce, and its ideal climate and abundant natural resources form the backdrop for an ideal lifestyle.

TOURISM

A feature of recent years in Australia has been the boom in tourism. Australia receives 6.5 million overseas visitors, of which 3.7 mill arrive via Sydney. With the unique beauty and diverse attractions of the vast Australian nation. Sydney is well prepared for the increased demand, which is not expected to moderate prior to the year 2000. When Sydney will host the Olympics.

PHYSICAL

Sydney is bound and restricted by Geographical features. To the East, a coastline of 100 magnificent beaches such as Bondi, Manly, and Palm Beach. To the North of Sydney is Broken Bay and the Hawkesbury River, surrounded by the Ku-ring-gai National Park. To the West are the Blue Mountains, which are part of the Great Dividing Range. This range runs along the Eastern coast of Australia. To the South of Sydney is Port Hacking, and the Georges River, surrounded by National Park.

TIP: Consequently further land cannot be created. This fact alone underwrites any decision to buy property in Sydney.

DEMOGRAPHY

Running West from Sydney Harbour is the Parramatta River, and South of this lies most of Sydney's diverse industries in a series of appropriately zoned precincts.
The majority of Sydney's population lives to the South and West, and this sector includes all of Sydney's low and middle cost housing. The North Shore sector accounts for all middle to high cost housing, with one notable exception. The suburbs around Double Bay, to the East of the city, and on the Southern foreshore of fabulous Sydney Harbour, form the most exclusive and most expensive residential precinct in Australia.

TIP: The only purely residential precinct in quality Sydney suburbs, and only 5k from the City centre, that is underwritten by ownership profile (i.e. owners from all over the world), is the Lower North Shore suburbs of Kirribilli, Neutral Bay, Cremorne, and Mosman.

RESIDENTIAL MARKETS

Approximately 70% of Australians own or are buying their own houses. Originally the Great Australian Dream was to own a free-standing house on a quarter acre parcel of land. The resulting sprawl, in Australian cities, saw the introduction of apartment buildings. Typically 3 storeys and no lift. During the 1960s high rise residential buildings proliferated, particularly in Sydney. By 1980 planning restrictions eliminated further high rise development.

TIP: This ensures that demand always exceeds supply

THE RENTAL MARKET

For the last several decades the Sydney rental market vacancy rate has hovered between 1-3% vacancies, while most comparable Western cities of the world have vacancy rates of 6% to 10%. As of early 1996, Sydney has a rental crisis, with an acknowledged vacancy rate of less than 1%, and prime Lower North Shore suburbs have an official vacancy of 0%. Current returns from residential investment property are approximately 5.8% to 6% pa. gross. Such a return is likely to net between 4 and 4.6% to the landlord. Very generally, property values in Sydney increase at a remarkably steady rate, that varies between 4 and 7% above the rate of inflation (currently less than 2%). Therefore including rent income, handsome gains over extended periods are the norm.

POLITICAL

Australia has a three tiered system of democratic government based on the Westminster system.

• The Federal government: based in the Nations capital Canberra, attends to matters of national importance, such as defence, treasury, and immigration.
• The State governments: are responsible for Transport, Police, Education, etc
• Local government: or "councils" are responsible for managing the local affairs of the community.

TIP: On March 2nd 1996 the people of Australia voted into power a new conservative Federal Government for a minimum period of three years, and as a consequence the value of Australian property is more likely to increase in value.

  Last Update: 06 December, 2003 Web Author: Maurice Nash