Sydney can successfully sail against the ‘price decline’ tide
Sydney prices are up by 4% in last 6 weeks, observes RP Data. Pete Wargent for the Property Observer is not surprised, despite rumours of falling housing market in the wake of interest rate slash in May.
Auction clearance rates
Nearly 80% auction clearance rates were enough testimony to how Sydney has been faring of late. The market is now all geared up to respond strongly to the possible low interest rate environment (quite in contrast to other areas like Adelaide, Hobart, and Brisbane) in coming months.
Sydney has conquered its limitations
Sydney has had its own property market limitations to conquer? A constant surge in population (leading to chronic housing shortage), planning and compliance restrictions, and a difficult-to-predict investor activity being few of the worries Sydney has had to tackle all through.
Cash rate cuts to help Sydney
Piggybacking on further rate cuts in August, Sydney should keep doing well. Its property prices have not reached anywhere close to the saturation mark yet. Investors should make a beeline for all hierarchies of its real estate.
In short, there is no reason for alarm, the pan-nation price decline (“prices still remain 2% below their previous 2010 peak”) notwithstanding.
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In my opinion, Sydney has provided a great platform for property market resurgence because it has converted its limitations into its strengths.
Sydney has exploited its migrant inflow prudently
Take the instance of population surge- while many believe that it creates housing shortage, Sydney hopes to cash on the ‘educated’ and ‘skilled’ migrant inflow and interstate inflow for tightening its construction sector.
Sydney taps foreign stimulus really well
In regards to the investors, Sydney experts understand that there are regulations restricting foreign investors from pumping money into established dwellings.
Keeping such dwellings in best shape for the local investors, the real estate fraternity ensures development-ready land and red tape-less off-the-plan construction for the foreign buyers.
What in your opinion separates Sydney from the rest in terms of being a powerful real estate venue?