What is really happening in the Sydney Property Market this Spring?
Various factors work together in making this spring a time to cherish for the Sydney property market. Michael Yardney for the blog Property Update opines that housing affordability, consumer optimism and low interest rates are working in sync to promote the buoyancy which this capital city is witnessing.
While all the capital cities have something to show in comparison to the regional areas which have been languishing for some time, Sydney’s growth has only been surpassed by Perth (in terms of hike in dwelling rates).
Median house price growth
Its Median house price has risen by 7.3% over the last year and Median unit price has spiked by 3.2%. There are ample reasons for the superb performance of Sydney, feels Yardney.
- Most of the jobs created in Australia have been provided by NSW in general and Sydney in particular.
- Sydney is doing well in terms of intrinsic value, following all the economic fundamentals.
- Household debt is not a concern (unlike some other areas) and savings-oriented citizenry has amassed enough in the kitty to pay for upfront costs of homes.
- Population is growing at a smart rate, thus pushing up housing demand.
- Auction clearance rates are atypically high and point towards boom times.
You can read the original article here.
In my opinion, it is worth noting that Sydney’s Median house price growth of 7.3% (quoted by Yardney) is more than twice the national average (a ballpark figure of 3.4%).
Both kinds of migrations help Sydney’s cause
Overseas and interstate migration is helping its cause, adding skilled workforce to its industrial sectors and enhancing number of property investors.
Auction clearance figures a true barometer of market buoyancy
The auction clearance rate is a little atypical but it does not seek any favours from prearranged boardroom sales or private treaties. Properties sold in Sydney auctions, with a few exceptions; fall in the “sold at auction” category.
There is little doubt then that Sydney should keep doing well in times to come.
Do you think Sydney property investors are shrewder than their counterparts?