If the value of your home shoots up from $500,000 to $550,000 and the rent you ask for it remains the same, what gets eroded in the process is called rental yield. You know the grind. Cameron Kusher for the property Update suggests that gross rental yields in capital cities are expected to fall further in near future with home value growth decidedly outperforming rental growth.
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Sydney Robustly Placed In This New Property Cycle
Michael Yardney, while writing an article for the Property Update, talks about a few things we have already heard but the perspective is fresh and the article quite engaging nonetheless. According to him, we have just hit the expansionary stage of the property cycle and this will cause a ripple effect. To explain, property prices will grow in the inner suburbs and slowly but steadily capital growth will move outwards, ending in the growth of the outer suburbs.
All You Want To Know About The Sydney Property Market
In an article for the website Property Update, George Raptis offers a few brilliant insights into how the property cycle will move towards its peak and what may be the immediate and distant implications of the apartment boom.
Sydney Posts 4.3% Housing Value Growth
If I were to use the racing jargon, I would say that Sydney is simply cantering away from its rivals. Recording a 4.3% growth in median house prices for the September quarter, the harbour city has well and truly raised its tether and also raised the bar for its peers. Toby Johnstone in an article for The Sydney Morning Herald observes the trend.
Sydney’s Performance Is Not A Barometer For Other Capital Cities
The property market is on recovery mode but rise in median house prices or capital city value growth should not be made an occasion for celebration just yet. Michael Yardney for the Property Update mentions how the 2.2% growth in median housing prices this quarter is quite moderate and even below the last quarter’s performance by 0.3%.
The average capital city value growth is not a true reflection of the country’s property market either. It’s just that Sydney to a very large extent and Melbourne in a smaller capacity have overcompensated for the patchy performance of other capital cities; and hence the growth.
Consumer sentiment, though reported otherwise, is still sloppy and there is sparse growth in household income. Recent oversupply in Sydney may impact rental yield negatively but the capital city itself (along with Melbourne) should continue to do well.
You can read the original article here.
Do you think Sydney will beat Melbourne flat in terms of value growth over next few years?
Sydney Promises “Frenzy” Of Construction Activity
A spectacular rate of auction clearances (“at auction” clearances) is just one trend that underpins how well the Sydney property market is doing. Add to this the fact that Sydney has topped the chart for “capital city value growth” and is showing promising figures for median household prices too. This implies that there will be rampant construction activity in Sydney in coming times.
Cameron McEvoy for the blog Real Estate View talks about a few interesting projects which are already on way or in the pipeline for Sydney.
