Sydney Has its Property Fundamentals Intact
Australian Bureau of Statistics’s (ABS) property figures have dispelled any myth associated with the property market boom. If anything, the market is going strong and its intrinsic fundamentals are completely intact (at least as yet). Miriam Bell sheds light on the trend in an article for the website Your Investment Property.
March quarter results
Only in the March quarter, Sydney’s property prices have shot up by 2.3%. Detached houses saw an increase of 2.4% whereas apartments escalated by a clean 2%. While this acceleration is still slower than the one witnessed in the last quarter (the Dec 2013 quarter), the year-to-year increase of 16.6% for detached dwellings and 13.7% for apartments is certainly no little cause for cheer.
Hobart close on Melbourne’s heels, which in turn is following Sydney
Melbourne and Hobart have shown happy trends, too; what with the cities growing at 2.1% and 1.4% over the March quarter. The exception to this welcome rule has been the performance of Canberra- the capital city has been trailing behind; losing its ground by -0.1% over the same quarter.
The stock of residential dwellings stands at a neat $5.1 trillion. This, explained in terms of average, means that each home in Australia is priced at $546,500.
You can read the original article here.
Melbourne may rally after price corrections
I think Melbourne has had its own spate of price corrections and this is going to lend solidarity to it in coming months. Property prices in Sydney have been giving an impression of a property boom but thankfully, the demand-supply dynamics and sustained property fundamentals might mean that the prices can still rise without any fear of non-affordability.
Sydney may exhibit sustainable growth
Yes, value growth in the harbour city is definitely expected to mellow down to 5%. The federal budget is clearly news to rejoice when it comes to the interest rates. Another year of low interest rates would mean the government’s move to pump up the property sector through interest-ease has found its lobbyists where it matters (after heated debates over the impact of the move on on inflation).
What kind of value growth do you expect Sydney to display in 2014?