The North Ryde Property Market At a Glance
Image from : NorthRyder, CC BY-SA 4.0, via Wikimedia Commons
If you're thinking about property investment, North Ryde is a highly sought-after suburb that's popular with professionals and families. It offers a solid mix of residential areas along with business and shopping, stellar access to public transport and is close enough to Macquarie University and Macquarie Shopping Centre to make it highly convenient.
It isn't known for its nightlife in comparison to other suburbs of Sydney, but it offers plenty of convenience for work and leisure. What else does every prospective buyer need to know about North Ryde? Well, let's take a look at the benefits, risks, and challenges of the local property market.
The Benefits of Buying in North Ryde
With the Macquarie Park business district close by and the university, North Ryde boasts high employment, which is a strong driver for rental demand in the area, whether you're looking for professional tenants or happy to house students.
Another benefit of North Ryde is its excellent infrastructure with easy access to two train stations, regular buses, and an easy commute to the CBD and its surrounding areas. It's a convenient location for a wide range of people, which is why it's such a sought-after suburb.
In addition to North Ryde's amenities, it's close enough to the Sydney CBD to count those amenities as well. You're only 15 kilometres away from everything the CBD has to offer, but North Ryde has plenty of its own parks, recreational facilities, shops, cafes, and restaurants to choose from.
Macquarie University is a highlight, but there is a wealth of high-quality schools to choose from, which is why the area is so attractive to students and families. The key benefit to property investors, of course, is consistent rental demand.
The area has plenty of ongoing development projects on both the residential and commercial development front, which will only contribute to further growth in the area and could mean even more potential for capital growth.
The Risks and Challenges Associated With Buying in North Ryde
North Ryde sounds incredible, so what risks and challenges might you face? Well, traffic is a problem during peak hours and it tends to get congested around the business park and the university. If you're hopping on the train or bus to commute, you don't need to worry about it and that is a popular option for many commuters.
North Ryde is incredibly popular, which has led to higher demand for properties when they're available and that naturally pushes prices up, which can make it tougher for property investors to get a good price on a rental property. With that comes the added risk of overdevelopment, especially when there are already traffic congestion issues at peak times. As with any "spillover" suburb, there's a risk that it becomes an extension of the city that so many people are trying to get away from. However, that is a risk with any suburb within 50 kilometres of the CBD.
There is some flood risk, though North Ryde is less prone to flooding than other locales. In heavy rainfall, North Ryde is more likely to localised flooding, a local plumber can provide advice about drainage solutions and inspect the property for potential issues. You can also review the floodplain management risk management plan for the Parramatta River, but none of the flooding hot spots identified within the report are located in North Ryde.
Though flooding might not be an immediate concern, the area is known for ongoing plumbing problems. It's a common issue in older suburbs due to ageing pipes and drainage systems that weren't designed to handle modern living. Before you move forward with a property, you should speak to a plumber who knows the local area well enough to advise you on some of the issues a property might be up against.
Investment Considerations for the North Ryde Property Market
Ultimately, the key to making a solid investment is due diligence. You must conduct a thorough inspection, hire a reputable building and pest inspector, and use a qualified surveyor to identify potential issues or flood risks.
The median house price in North Ryde has increased by 7% in the last 12 months, resting comfortably at $2,445,000 and offering a rental yield of 2.1%. If you would prefer to get into the unit rental market, the median price is $800,000, an increase of 6% in the last 12 months, and a rental yield of 5.2%. The median rent per week for a unit in North Ryde is $710 while the median house rental cost per week is $950. So, you can see there is a strong rental market in the area and a current vacancy rate of just 1.54%, which is a good place to be.
North Ryde offers solid long-term growth potential, but it's important to carefully weigh up the benefits and risks before you proceed. If you're thinking about renovations or extensions either now or in the future, be sure to check with local regulations to ensure it's possible.
