Experts predict Sydney residential property market will remain strong

The real estate experts at BIS Shrapnel have released a new report predicting that the property market in New South Wales will continue to go from strength to strength over the next few years.

According to the new Residential Property Prospects; 2013 to 2016 report, Australians can expect the residential real estate market to become fairly uneven in the near future.

Some states, such as New South Wales, Western Australia and Queensland, will see a continuation of the recent improvement in the property market. Others, such as Victoria and South Australia, will not be so lucky, with the market evening out or tailing off in these areas.

The good news for anyone who owns or who is looking to purchase Inner West real estate is that Sydney has been highlighted as one city where the value of residential property is expected to improve significantly over the next few years.

"We are forecasting total price growth in Sydney over the three years to June 2016 to be 19 per cent, or a moderate 5.9 per cent per annum," explained BIS Shrapnel senior manager and study author Angie Zigomanis in a statement released July 1.

Mr Zigomanis says that property investors are increasingly looking to Sydney as a potential location to purchase real estate, due in part to the fact that retail yields have been up in recent months.

BIS Shrapnel has also predicted that Sydney will see an increase in the number of first home buyers looking to buy property in the area over the next few years.   

"We anticipate that first home buyers should begin to improve back to normal levels through 2014 as the impact of these changes wash through. This will add to dwelling turnover and help to drive slightly stronger growth in the coming years," said Mr Zigomanis.