Sydney Property Market to Keep Striking it Rich
In an article for the website Your Investment Property, Alastair Lynn shares with us why he believes the Sydney property market will continue on its merry way. The ever-falling interest rates will make entry into the real estate sector a pretty smooth one. After all, there is no dearth of price-sensitive buyers, and for them, lower interest rates would mean a relaxed payment structure.
Low interest rates
Prevailing interest rates are likely to boost demand further and help Sydney, and Melbourne as well, experience more capital growth. There is a small fear though that in the event of growth not mellowing down at all, the RBA will have to jump into the picture. The Reserve Bank of Australia is ready to soak up up to 10% in the year 2015, but if Sydney’s capital growth projection crosses 15%, the RBA will have no option but to step in. Lynn believes that faced with such phenomenal growth, the premier bank will not trigger corrections in the interest rates but instead tighten controls of macro prudential regulations.
You can read the original article here.
Overseas buyers to the fore
Another facet of the real estate boom is the ongoing trend involving foreign buyers. In my opinion, Australia is a safe haven for most overseas buyers and its educational infrastructure and steady development are convincing expatriates to buy property here. The relentless shrinking of the Aussie dollar has only ensured greater purchasing power for overseas buyers and this means more good days ahead for Prestige Market properties in Sydney and Melbourne.