Where is each capital in the property cycle?

Herron Todd White (HTW) is the largest independent property valuation and advisory group in Australia, with over 400 staff across 40 offices. They are independent because they only conduct valuations; they neither sell nor develop property.

HTW's April 2007 "This Month in Review" assesses the position of each residential region in the property cycle, ranging from:
1. Bottom of market
2. Start of recovery
3. Rising market
4. Peak of market
5. Declining market

The wise investor aims to purchase only in phases 2 (start of recovery) and 3 (rising market).

On HTW's criteria, every capital is now at the peak of its cycle, except Sydney, which is in the "rising market" stage.

We believe the reasons for Sydney's superior prospects are:

1. It is undervalued because it missed out on the property boom enjoyed by other regions over recent years,
2. Chronic undersupply of housing leading to increased rents, and
3. Residents in the affluent areas close to the beaches and the city are generally doing well due to the strong economy and tax cuts.

We have sourced some excellent boutique residential properties in great areas of Sydney with gross yield around 5%.

In Sydney's highly-desirable northern beaches we have brand new, and off-the-plan, units from $385k (one bed) and $499k (2 bed) all with parking.

In Sydney's exclusive lower north shore (Crows Nest) we have two sets of superb-quality off -the-plan apartments:
1. Due for completion in Q3 2008, 1 bed from $385k, and 2 bed with parking from $590k
2. Due for completion in Q1 or Q2 2009, very large apartments, all with parking, from $480k (1 bed) and $650k (2 bed).

For those looking outside Sydney, we have also available excellent house & land packages in south east Queensland, close to the coast, with rental yield of around 5% gross and good capital growth prospects.