Sydney Property Market Growing Relentlessly
Has the Sydney market gotten a second wind or was it always going strong, popular perception notwithstanding? Every day, pundits come up with huge numbers proclaiming that the Sydney property market has become grossly overpriced and that affordability will be really tested. They are sure that the prices cannot be sustained for long and will come down. Yet an article on The Adviser says that the market is growing relentlessly and may achieve unprecedented growth in a short time from now.
A few strong statistics
A year-to-date jump of 16.8% saw Sydney median prices touching $929,000. This is beyond what CoreLogic RP Data and Domain Group had envisaged for Sydney. 48,623 houses were sold between March 2014 and March 2015 and this figure indicates a 4.3% rise.
You can read the original article here.
The question of affordability
Sydney is beating market predictions at will. Affordability has long been a debate for the Sydney property market but we fail to ruminate on ‘real’ prices when we talk about the subject of affordability. Unless adjusted for inflation, no price can be a true barometer of its times. If the price to buy a property in Sydney has increased, so has the ability to pay. Hasn’t our household income increased over the last few decades? Hasn’t our purchasing power grown?
Sydney’s gallant run should continue
I think Sydney is still sailing close to the property fundamentals and the market is not nearing any kind of a boom phase. In actuality, what seemed to be a massive growth in prices in the year 2014 was only Sydney’s effort to compensate for a decade of plateau-prices. Our growth looked so good because it was coming in after years of real estate lethargy. In my view, Sydney will keep giving us pockets of outstanding growth (as is being presently witnessed in the Eastern Suburbs and the Western Suburbs) even as its other areas will consolidate the overall capital growth figures.
What kind of growth do you expect Sydney to post in the year 2015?