Sydney Real Estate Shows No Signs of Slowing Down
I have been told by reliable sources that over half of the top 500 companies in Australia are based out of NSW in general and Sydney in particular. This statement is to assert that the growth of Sydney real estate is not a fluke, because apart from the fact that no fluke can hold this long, there is also a school of thought which says a place must have its merits if it is engaging the attention of powerful business houses across Australia.
Natural boundaries hard to beat
Sometimes I wonder where Sydney could head to if it was not hindered by boundaries which naturally obstruct an urban sprawl. With Hawkesbury River on its northern perimeter and the Great Dividing Range to the west, there is no denying the difficulties of urban expansion. Add Royal National Park to the south and the mighty Pacific to the east and you will understand what I am talking about.
Sydney confuses experts
While fighting nature can get really tough, Sydney gives an impression of fighting everything else ably. There is no dearth of pundits who have shouted themselves hoarse talking about a price correction. They have categorically said that the best days are over and that the kind of unrestrained growth Sydney has shown cannot go on forever. A correction is to be expected soon.
Internal and external factors supporting price growth
All you need to do is to look at the demand-supply gap, the population growth figures and the current levels of red tape. I am sure it will give you a picture that the Sydney property market is not going to mellow down any. We are woefully short of the homes we need to have in Sydney. This can only spike the real estate prices further. A few days ago, I read somewhere that the Sydney market has gained its second wind of late. I beg to differ. Sydney does not need a second wind because the wind has not slowed down a wee bit.
Low interest rates have convinced the consumer base that this is the best time to buy, and despite high prices, they are quite willing to take the plunge. After all, they believe the market can still offer handsome capital growth. Few pockets are worth considering more than others and such pockets will largely be determined by the availability of development-ready land, demand-supply hiatus, demographics and the gentrification trend.