The Macquarie Park Property Market At a Glance
Image by Grahamec, CC BY-SA 3.0, via Wikimedia Commons
Macquarie Park is part of Sydney's Ryde area, a stone's throw from the Elouera Reserve. It's a popular spot for first-home buyers and property investors alike because the property market offers a range of benefits and the area is only 13 kilometres from the Sydney CBD. The area was once part of North Ryde, but it has been its own suburb since 1999 and it has seen major growth since then.
So, is it the right spot for you to invest? Let's take a look at the benefits, risks, and challenges that come with investing in Macquarie Park.
The Benefits of Buying in Macquarie Park
One of the major benefits of buying in Macquarie Park is the rental yield! Over the last 12 months, the area has seen significant growth and for a unit, you can expect a rental yield of 4.6% and 4.2% for a house. Comparatively, the rental yield in the larger Ryde area is just 2.4& while it's 2.8% in Sydney Metro. So, it's a great choice for investors looking for both cash flow and long-term capital growth.
There is strong rental demand in Macquarie Park and the median unit rental price is $700, an increase of 7.7% in the last 12 months. Part of that is due to its strategic location. In addition to Macquarie University increasing the presence of students in the area, there is also a significant business presence with many multinational corporations located in the area. With strong transport links and well-developed infrastructure, Macquarie Park is a great hub for commuters and it's popular with residents and investors.
The Risks and Challenges Associated With Buying in Macquarie Park
As with any suburb, there are risks and challenges associated with buying in Macquarie Park. What do you need to pay special attention to?
The flood risks. The City of Ryde created a Floodplain Risk Management Study & Plan for the area and you can view the Macquarie Park portion of this to review flood risk areas. It details more than 100 homes that are at the highest risk in the event of flooding, so you must familiarise yourself with the document if you're looking for properties in the area.
You should also speak to a local plumber, they know the area like the backs of their hands and can offer you advice on risk mitigation, prior instances of flooding, and whether the property is a safe investment.
There is also cause for concern when it comes to building defects. While a local order is no threat to residents, just last year the council issued a Building Work Rectification Order for an apartment building due to basement levels. Just because there's no immediate danger, it will come at a cost for the owner. It underscores how important it is for investors to carry out due diligence. Be mindful of the building and pest inspector you enlist, you want a local who is experienced in the specific issues the area faces.
Rental vacancy rates could be a concern, with the current rate sitting at 2.9% which is much higher than the surrounding areas. However, more than half the population of Macquarie Park are renters so if you find the right property and market it well, you shouldn't be too concerned.
Final Thoughts on the Macquarie Park Property Market
There are plenty of benefits to choosing Macquarie Park, whether you're looking solely at investments or you're investing in your future by moving to the area. It's a small town suburb, but with a great location, plenty of nature and amenities, plus strong rental yields, it makes for a great investment opportunity.
As with any suburb, city, or property, the key to good investment is due diligence. As long as you fully research an area and get to know it, the market, and the local experts, there is no reason to pass on the area. Always check floodplain management studies; always carry out a pre-settlement building and pest inspection; always speak to a plumber about flood risk, history, and mitigation.
There's risk in every investment – the question is whether you're more interested in long-term capital growth or an influx of cash flow now. Macquarie Park can provide both as long as you find the right property.
