Will Sydney apartments go up in value in 2007? 

Are Sydney apartments set to boom in 2007
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14th February, 2007

Sydney apartment property prices are predicted to increase significantly in the 2007 year and beyond.

This is due to the significant rental shortage in Sydney other CBD property markets.  Tenants can be found queuing up amongst 50 other people, each looking to secure a rental of a 1 or 2 bedroom city apartment.  This increased demand is allowing property or Sydney apartment owners to get a little cocky and raise rents.  As rental prices increase, this builds momentum for Sydney apartment rental rises across the Sydney rental market.  As rentals are renewed each 12 months, agents and owners begin putting rentals up to keep up with the market.  

These rental increases then increase the net return on the property.  This increased optimism then stimulates current and future capital growth, increasing momentum.  Increased momentum in the Sydney apartment market leads to increased prices, and begins to flow out into other areas within close proximity to the Sydney CBD.

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