Sydney Property Market Hasn’t Peaked Yet
In an article for the website Property Update, Kevin Turner talks about the real estate market of Sydney and advises investors not to panic in the wake of falling property prices. It has not dawned on us any recently that Christmas brings with it a lot of property adventure.
Christmas deadline brings a change in perception
The festive deadline implies that many properties hit the market. There is an associated dilemma to the whole picture. Buyers feel there must be something going wrong with the market because investors could be selling off in a rush. This is a perception issue and has nothing to do with the actual market condition prevalent at a particular real estate location.
How is the Sydney property market likely to perform?
At this moment, you will see a lot of prophesies. Will the Sydney property market catapult to an unprecedented level from here on or will it plateau, or take a short pause and correct itself? Is the momentum sustainable? High clearance rates are sufficient proof that demand is absorbing supply and this being the case, contests Turner, we won’t any shortly be visiting a plateau-like situation.
How long can the market carry?
So the crux question is- the market has got strength at present, but up to what point will its feet carry it? When is the strength going to sap? The first thing to keep an eye on is the falling interest rates. They generally spell some kind of trouble with the economy. So if in the wake of ever-dropping interest rates, the government does take some stern measures, and there is no predicting how will it impact the property market (or the whole economy in general).
Sydney real estate hasn’t peaked yet
Turner feels the market has yet to peak and that there is a 15%-20% ascension still on the cards. How that is going to materialize is an unresolved question. Whether we will witness a linear chain of growth or a spasmodic flurry here and there marked with corrections remains to be seen.
You can read the original article here.
Lowering of interest rates
The choice of lowering the interest rates was one that the government had to consider at length before making it. The idea behind the move was to shift the economy from the hard-hit mining sector to the property sector. The move definitely worked and in its wake produced certain fantastic results for Sydney and Melbourne. Even today, there is no inflationary pressure due to the low interest rates though there is definitely slow movement in the GDP which is less than admirable.
Mellowed down but sustainable growth
In my opinion, if we can settle for a mellowed down economy in the year 2015 and look for a growth of 7%-8%, Sydney won’t falter in the expectations we carry from it.